https://finance.yahoo.com/news/inflation-accelerated-in-august-as-oil-
prices-surged-123228949.html

Consumer prices edged higher in August as a surge in oil prices
contributed to an uptick in headline inflation, according to the latest
data from the Bureau of Labor Statistics released Wednesday morning.

The Consumer Price Index (CPI) rose 0.6% over last month and 3.7% over the
prior year in August, an acceleration from July's 0.2% monthly increase
and 3.2% annual gain in prices.

The year-over-year increase was slightly higher than economist forecasts
of a 3.6% annual jump, according to data from Bloomberg.

A significant rise in energy prices drove the bulk of those increases. Oil
prices hit new year-to-date highs on Tuesday with West Texas Intermediate
(CL=F) closing just below $89 per barrel. Brent crude futures (BZ=F) sat
above $92 per barrel � the highest levels in oil prices since November
2022.

On a "core" basis, which strips out the more volatile costs of food and
gas, prices in August climbed 4.3% over last year � a slowdown from the
4.7% annual increase seen in July, according to Bloomberg data. Monthly
core prices rose 0.3%, slightly higher than economist expectations of a
0.2% month-over-month gain and also higher than July's 0.2% monthly rise.

The energy index decreased 3.6% for the 12 months ending in August on an
unadjusted basis, although prices increased 5.6% on a seasonally adjusted
month-over-month basis after rising just 0.1% in July.

Gas prices rose 10.6% in August following a 0.2% increase in the previous
month.

Within core inflation, rent prices continued to surge. The index for rent
and owners' equivalent rose 0.5% and 0.4% on a monthly basis,
respectively. Owners' equivalent rent is the hypothetical rent a homeowner
would pay.

The shelter index was the largest factor in the monthly increase of core
inflation, increasing 0.3% month-over-month and 7.3% over the last year.
Still, both of those measures were down compared to July's 7.7% annual
gain and 0.4% monthly jump.

Other indexes that rose in August included motor vehicle insurance,
medical care, and personal care, BLS noted.

The indexes for lodging away from home, recreation, and used cars and
trucks were among those that decreased over the month. The monthly prices
for used cars and trucks dropped another 1.2% in August after seeing
prices fall 1.3% in July.

The food index increased 4.3% in August over the last year, with food
prices rising 0.2% from July to August. The index for food at home
increased 0.2% over the month, after rising 0.3% in July.

The index for meats, poultry, fish, and eggs rose 0.8% in August as the
index for pork increased 2.2%. The index for other food at home increased
0.2% over the month and the index for cereals and bakery products rose
0.5%, according to the BLS.

Egg prices, however, fell another 2.5% month-over-month after dropping
2.2% in July and 7.3% in June.

US stocks edged lower in early trading following the release of the data.
Treasury yields jumped about 9 basis points to trade around 4.3%.

To hike or not to hike?

Inflation has remained significantly above the Federal Reserve's 2%
target. That, along with the upward pressure in oil and a labor market
that, while softening, is still tight, adds to concerns that the Federal
Reserve could continue to raise interest rates later this year.

But markets still expect the central bank to pause its hikes at its
meeting later this month. Following the release of the data, markets were
pricing in a roughly 95% chance the Federal Reserve keeps rates unchanged
at its Sept. 20 policy meeting, according to data from the CME Group.

The central bank raised rates by another 0.25% in July after pausing its
aggressive rate-hiking cycle in June.

"In our view, the economy maintains decent momentum but is showing signs
of slowing, and thus the Federal Reserve is likely to pause next week and
wait for additional data to unfold for the November meeting," Brian
Pietrangelo, senior vice president and managing director of investment
strategy at Key Private Bank, wrote in a reaction to the report.

Seema Shah, chief global strategist at Principal Asset Management, agreed
but warned one more rate hike is still possible before the end of the
year: "The inflation print likely is not enough to tilt next week�s Fed
call towards a hike, yet it also hasn�t entirely cleared up the question
of a November pause vs. hike."

"The rise in headline should come as no surprise given the recent run-up
in energy prices and the Fed will likely look through the number� for
now," the economist continued. "But the general expectation was that core
inflation would remain stable, if not decelerate this month, so the upside
surprise probably leaves the Fed with a bad taste in its mouth and keeps
it wondering if it still has more work to do."

Multiple economists said the slowdown in shelter prices is a good sign for
the central bank, but that the higher increases seen in the prices of
services and core inflation will likely "keep the Fed in a defensive
stance," noted Eugenio Aleman, senior economist at Raymond James.

"The decline in core CPI (excluding food and energy prices) on a year-
over-year basis is also a good omen for the Fed," Aleman said. "However,
the decision for next week�s FOMC meeting will not be one to take lightly,
especially because core CPI was higher than expected and because oil
prices have continued to increase in September."

--
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.

Durham Report: The FBI has an integrity problem. It has none.

No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.

Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.

Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.

President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.