Markets drop again as US inflation fails to sooth rate fears

AFP :
Equity markets mostly fell Friday as a below-forecast US inflation reading boosted hopes the Federal Reserve will hold interest rates next month but did little to dispel fears it could hike later in the year.

A highly anticipated report showed July consumer prices rose more than the previous month but less than feared, giving the US central bank room to take a lighter touch with monetary policy after more than a year of tightening.

The data also showed closely watched core inflation was easing, while jobless claims came in higher than expected, adding to optimism as the Fed uses the strength of the labour market as a guide in its decision-making.