August inflation rate slides to 8.3%, falling for second straight month
THE ANNUAL INFLATION RATE COOLED FOR THE SECOND STRAIGHT MONTH BUT NOT BY AS MUCH AS WALL STREET EXPECTED.
CONSUMER PRICES IN AUGUST CAME IN AT 8.3% FROM A YEAR AGO.
THAT’S DOWN FROM A PEAK OF 9.1% IN JUNE.
BUT ANALYSTS EXPECTED INFLATION TO FALL TO 8.1%, SO SLIGHTLY MISSING TARGETS THERE.
AS EXPECTED, ENERGY PROVIDED THE BIG DOWNWARD PRESSURE HERE,
THE INDEX DOWN 5% MONTH OVER MONTH. DRIVEN LARGELY BY A DROP IN GAS PRICES, YOU’VE FELT THE RELIEF FILLING UP YOUR TANKS, THIS DATA PROVES IT. BUT GAS IS STILL UP OVER 25% ON THE YEAR.
USED CARS IS THE ONLY OTHER CATEGORY THAT WENT NEGATIVE THIS MONTH.
AFTER OVERALL MONTHLY PRICES STAYED FLAT IN JULY, ECONOMISTS WERE HOPEFUL WE COULD POSSIBLY SEE A DROP IN PRICES IN AUGUST, FOR WHAT WOULD HAVE BEEN THE FIRST TIME SINCE THE ONSET OF THE PANDEMIC.
THAT DIDN’T HAPPEN, OVERALL PRICES WENT UP 0.1% FROM JULY TO AUGUST, SO JUST A TICK.
BUT IF YOU TAKE FOOD AND ENERGY OUT OF THE MIX, CORE CONSUMER PRICES CLIMBED 0.6% FOR THE MONTH, UP 6.3% ON THE YEAR.
THE AUGUST DATA IS COMING OUT ONE WEEK BEFORE THE FEDERAL RESERVE’S SEPTEMBER MEETING. THE TWO-MONTH SLIDE IS VERY LIKELY NOT ENOUGH FOR THE FED TO CONSIDER PUMPING THE BRAKES ON RATE HIKES. ANALYSTS ARE EXPECTING *ANOTHER 75 BASIS POINT INCREASE IN A WEEK.
I’M SIMONE DEL ROSARIO IN NEW YORK IT’S JUST BUSINESS.