Still Too Hot to Handle: August CPI

Source: Economics Group of Wells Fargo Bank, N.A.

Summary

The Consumer Price Index increased 0.1% in August, but the modest gain for the headline index masked what was a disappointing report. Gasoline prices fell 10.6% in the month, helping to keep overall inflation in check, but beyond energy goods there were not many encouraging takeaways. Excluding food and energy prices, core inflation increased 0.6%, well above the Bloomberg consensus of 0.3%. Core goods inflation remained strong and broad-based despite indications that supply chains are functioning more smoothly and inventory stockpiles are building. Core services inflation also remained hot, increasing 0.6% in August. READ FULL ARTICLE>>