Inflation remained elevated in August even as the pace of consumer price growth from a year ago remains elevated, as the Federal Reserve considers a potential interest rate hike next month.
The Bureau of Labor Statistics (BLS) said on Wednesday that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – increased 0.4% on a monthly basis and is up 3.4% from a year ago.
Expectations vs. reality
Those figures were in line with the estimates of economists polled by LSEG. The monthly data follows a reading of 0.1% in July, while the annual figure is unchanged from last month’s reading.
So-called core prices, which exclude volatile measurements of gasoline and groceries to better assess price growth trends, were up 0.3% from a month ago and are 2.4% higher year over year. The monthly figure was slightly hotter than the LSEG estimate, while the annual figure was in line with expectations.
The monthly figure represents a slight uptick after price growth was up 0.2% in July, while the annual figure is slightly cooler than last month’s 2.5% reading.
INFLATION COOLED IN JULY BUT REMAINED ELEVATED AS FED WEIGHS RATE HIKES
The cost of living breakdown
What experts are saying
What does it mean for the Fed and interest rates?
What does it mean for the stock market?
Read the full article here
