The Bureau of Labor Statistics (BLS) reported that the consumer price index for August met expectations with a 0.2% increase, while the year-over-year rise of 2.5% was below forecasts for a 2.6% increase and marked a significant slowdown from July’s reading of 2.9%. This is the smallest monthly increase since January and marks the fifth consecutive decline.
Excluding food and energy, core CPI inflation rose by 0.3%, surpassing expectations of a 0.2% rise, but still lower than last year’s rate at this time which was at an annualized pace of 3.2%.
In terms of specific categories within CPI, food prices saw only a slight uptick with an increase in overall food index by just .01%, following two months where it had risen by .02%. The cost for groceries remained unchanged in August while energy costs decreased by -0-8%, after remaining steady in July.
Shelter costs increased slightly more significantly with housing rental rates rising to .05%; owners’ equivalent rent also increased during this period as well at half-a-percent.
While used car prices fell somewhat moderately compared to last month when they dropped over two percent (-1%), airline fares experienced quite an upswing jumping nearly four percent (3%) after having declined one point-two percent (-1%).
Investors were already anticipating that there would be some kind reduction made on interest rates; however now it appears likely that any changes will be less drastic than originally thought given these latest figures on core inflation measures released today which could make quarter-point cuts more probable rather than larger fifty-basis-point moves being considered instead.
BREAKING NEWS: U.S Inflation Reaches Three-Year Low According to Latest Data
The latest data from the Bureau Of Labor Statistics (BLS) shows that U.S inflation has eased to its lowest level in three years as consumer price index (CPI) rose by 0.2% in August, meeting expectations. This is a significant slowdown from July’s reading of 2.9%, marking the smallest increase since January and the fifth consecutive decline.
The core CPI inflation, which excludes food and energy prices, increased by 0.3% in August compared to expectations of a 0.2% rise and last year’s annualized pace of 3.2%.
In terms of specific categories within CPI, food prices saw only a slight uptick with an overall increase of just .01%, following two months where it had risen by .02%. Energy costs decreased by -0-8%, after remaining steady in July.
Shelter costs also saw a slight increase with housing rental rates rising to .05%; owners’ equivalent rent also increased during this period at half-a-percent.
While used car prices fell moderately compared to last month when they dropped over two percent (-1%), airline fares experienced quite an upswing jumping nearly four percent (3%) after having declined one point-two percent (-1%).
Investors were already anticipating that there would be some kind reduction made on interest rates; however now it appears likely that any changes will be less drastic than originally thought given these latest figures on core inflation measures released today which could make quarter-point cuts more probable rather than larger fifty-basis-point moves being considered instead.
