A lot of the numbers came in as expected with CPU month over month hitting the expected. HOWEVER Core inflation came in hotter than expected at 0.3% vs 0.2% for month over month.
Here’s a graphical look at the annual core CPI inflation rate. We’re of course way down from the peak, but still well above the pre-pandemic pace.
Reading things I have read here are some key highlights
Only five of the 65 forecasts in Bloomberg’s survey called for a 0.3% increase in the core CPI. Almost everyone else was at 0.2%, with four of them at 0.1%. Unsurprisingly, housing costs were the biggest culprit. The index for shelter rose 0.5% which the BLS says “was the main factor in the all items increase.” Airline fares rose a hefty 3.9% in August after falling for the previous five months This is the second straight higher than expected labor cost reading -- with real average hourly and weekly earnings rising more than forecast. Food costs barely rose in the month (+0.1%) but there was some movement under the hood. The BLS notes that the index for meats, poultry, fish, and eggs rose 0.8% in August and the index for eggs rose 4.8%.