Inflation Cools to Seven-Month Low 0.3% in August

Source: Bureau of Labor Statistics

Inflation decelerated in August to carve a seven-month low, with core inflation posting its smallest climb since February. XLY is up 0.02%, while VCR is down 0.14%.

• The Consumer Price Index for All Urban Consumers (CPI-U) stood at 0.3% in August, the lowest since the 0.3% in January. This compares with 0.5% in July and 0.4% in August.
• The monthly increase was driven mainly by the increase in prices of gasoline, household furnishings and operations, food, and shelter.
• The energy index climbed 2.0% as the gasoline index rose 2.8%, while the index for food gained 0.4%. This is the same for both food at home and food away from home.
• Core inflation clocked in at 0.1%, the smallest since February 2021, as declines were reported in airline fares, used cars and trucks, and motor vehicle insurance.
• Annual inflation was recorded at 5.3%, down from 5.4% in July as core inflation stood at 4.0%.