The US Bureau of Labor Statistics reported this Tuesday that inflation, as measured by the Consumer Price Index (CPI), decelerated to 8.3% on a yearly basis in August from 8.5% in the previous month. The reading was slightly above consensus estimates pointing to a decline to 8.1%. 

The Core CPI, which excludes volatile food and energy prices, rose by 0.6% in August (0.3% anticipated) and climbed to 6.3% on yearly basis, up from 5.9% in July and 6.1% expected.

Follow our live coverage of the market reaction to US inflation data.

Market reaction

The US dollar catches aggressive bids in reaction to the stronger-than-expected CPI report and for now, seems to have stalled its recent sharp pullback from a two-decade high touched last week.