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Inflation in US accelerates, Fed most likely increases interest rates

Inflation in US accelerates, Fed most likely increases interest rates

Inflation forecast for the US in August is projected to increase by 0.3%, but the actual price increase was 0.4%.
Report informs, thus, an annual inflation up by 1.9% in August. Notably, annual inflation was projected to be 1.8% in August. As a result, the probability of increasing the discount rate by Federal Reserve System (Fed) until the end of 2017 has risen to 44%. Notably, this figure was 22% on September 8.
Although, the higher inflation than expected, has increased US-dollar’s exchange rate, then the US-dollar has dropped again. Thus, the exchange rate has dropped from 1.19 USD/EUR to 1.1840 and is now back to 1.19.
Analytical Group of Report believes, US-dollar will remain at low level until inflation in the US approaches its target of 2% oil price will make $ 55 per barrel: “Increase in discount rate and rise in US-dollar rate can start from the mid-2018”.