Consumer prices posted modest increase in August
The core Consumer Price Index (CPI), which measures the price of goods and services excluding food and energy, increased 0.1% in August on a month-over-month basis.
The big picture: The core CPI numbers released Tuesday showed a smaller gain than the .3% increase economists were expecting. It was the smallest increase since February 2021.
- The headline CPI figure that includes energy and food prices increased 5.3% in August compared to a year ago and 0.3% from July.
- Economists had predicted a 5.4% annual increase and 0.4% for the month.
Between the lines: The energy index rose 2%, gasoline prices increased 2.8% and food rose 0.4%, per data released on Tuesday.
- Energy is up 25% from a year ago and gasoline has risen 42% during the period.
- The index for used cars and trucks decreased 1.5% in August on a month-over-month basis.
- Hotel and motel prices were down 3.3% and airline fares were down 9.1%, per the data.
Thought bubble from Axios' Kate Marino: With the rate of inflation cooling slightly in August, it gives the Federal Open Market Committee breathing room to put off a decision on dialing back its emergency market support when the committee meets next week.