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Inflation sped up again in August

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A person looks for items at a Costco Wholesale store on September 6, 2023 in Colchester, Vermont.

Robert Nickelsberg/Getty Images

The Consumer Price Index rose by 3.7% over the year in August.
That’s above July’s year-over-year increase.
The latest report from the Bureau of Labor Statistics suggests inflation is still too high, given the Fed’s 2% target.

Inflation is still a concern as it increased again in August.

The Consumer Price Index or CPI rose by 3.7% year-over-year in August, the Bureau of Labor Statistics reported. That’s greater than July’s year-over-year increase of 3.2% and exceeds the forecast of a 3.6% increase year over year.

CPI surged 0.6% month over month in August, matching the forecast. That comes after an increase of 0.2% month over month in July.

The new report also shows how much core CPI increased in August, a key inflation measure that excludes food and energy. Core CPI increased by 0.3% month over month, above the forecast of 0.2% and above July’s increase of 0.2%.

Year over year, core CPI soared by 4.3%, same as the forecast of 4.3% and below July’s increase of 4.7%.

Before this and the previous report for July, inflation had been falling. While the Fed has been fighting inflation with interest rate hikes, there may be more to come as inflation is still above the central bank’s target 2%.

“The monthly rate of change in both headline and core CPI measures have moderated nicely in recent months, but some of the usual trouble spots remain — shelter, and costs for motor vehicle insurance, maintenance, and repair,” Greg McBride, chief financial analyst of Bankrate, said in a statement before the release. “Further progress will require easing of price pressures on these items without any flareup elsewhere.”

The latest CPI report comes before the next Federal Open Market Committee meeting.

This is a developing story. Please check back for updates. 

Read the original article on Business Insider
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A person looks for items at a Costco Wholesale store on September 6, 2023 in Colchester, Vermont.

Robert Nickelsberg/Getty Images

The Consumer Price Index rose by 3.7% over the year in August.
That’s above July’s year-over-year increase.
The latest report from the Bureau of Labor Statistics suggests inflation is still too high, given the Fed’s 2% target.

Inflation is still a concern as it increased again in August.

The Consumer Price Index or CPI rose by 3.7% year-over-year in August, the Bureau of Labor Statistics reported. That’s greater than July’s year-over-year increase of 3.2% and exceeds the forecast of a 3.6% increase year over year.

CPI surged 0.6% month over month in August, matching the forecast. That comes after an increase of 0.2% month over month in July.

The new report also shows how much core CPI increased in August, a key inflation measure that excludes food and energy. Core CPI increased by 0.3% month over month, above the forecast of 0.2% and above July’s increase of 0.2%.

Year over year, core CPI soared by 4.3%, same as the forecast of 4.3% and below July’s increase of 4.7%.

Before this and the previous report for July, inflation had been falling. While the Fed has been fighting inflation with interest rate hikes, there may be more to come as inflation is still above the central bank’s target 2%.

“The monthly rate of change in both headline and core CPI measures have moderated nicely in recent months, but some of the usual trouble spots remain — shelter, and costs for motor vehicle insurance, maintenance, and repair,” Greg McBride, chief financial analyst of Bankrate, said in a statement before the release. “Further progress will require easing of price pressures on these items without any flareup elsewhere.”

The latest CPI report comes before the next Federal Open Market Committee meeting.

This is a developing story. Please check back for updates. 

Read the original article on Business Insider
Avatar

Read more

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