For the month of August alone, client costs rose 0.3% adjusted for seasonal swings. It was the second straight month in which the inflation fee fell barely. Without meals and vitality, costs rose 0.1% for the month, the smallest enhance since February.
Prices for airline tickets and automobile insurance coverage declined in August. And used automobile costs in August declined for the first time since February.
Over the previous 12 months, used automobile costs are nonetheless up a whopping 31.9%. Demand for used automobiles has been sky-high all through the pandemic as individuals sought alternate options to public transportation. Also hurting costs: new automobile manufacturing was hampered by a worldwide chip scarcity.
Inflation stays nicely above the Federal Reserve’s goal of round 2%. The Fed has signaled that it intends to wind down some of its emergency financial stimulus imposed final yr when the pandemic started. That may preserve inflation in test. But it additionally dangers slowing the financial system when the Delta variant seems to be hindering job development.
This is a growing story. It can be up to date.