The newest U.S. inflation numbers cause the world’s stock markets to decline marginally.

Wednesday saw a small decline in European stock prices as traders responded to the most recent U.S. inflation statistics.

The pan-European Stoxx 600 was lower by 0.2% in early trade, with basic resources and energy companies leading declines by falling 1% each, while retail stocks defied the trend by rising 1.9%.

After crucial August inflation data came in higher than anticipated, which undermined market hopes for falling prices and a less aggressive Federal Reserve, U.S. equities plunged on Tuesday.

According to data released on Tuesday by the Bureau of Labor Statistics, consumer price index (CPI) inflation in the United States increased by 0.1% for the month and 8.3% yearly in August, contradicting analyst predictions that the CPI would decline by 0.1% on a monthly basis.

The volatile energy and food expenses are excluded from the core CPI, which increased 6.3% from August 2021 and 0.6% from July.

The reading increased the rumors that the U.S. Federal Reserve will keep up its aggressive monetary policy tightening strategy.

Ahead of the Fed’s September meeting, when it is anticipated to announce its third consecutive 0.75 percentage point rate rise to battle excessive inflation, the inflation report was one of the final pieces of data on inflation the central bank will examine.

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