Core Inflation Slows Sharply In Win For Team ‘Transitory’

US consumer prices rose less than expected in August, bolstering the Fed's "transitory" narrative and likely cementing the case against a taper unveil at the September FOMC meeting. Core prices rose just 0.1% MoM, the BLS said Tuesday. That was far less than the 0.3% economists forecast (figure below). The headline gauge rose 0.3% from July, also cooler than anticipated. The monthly rise on the core gauge was the smallest since February. Indexes for household operations and shelter, new veh

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One thought on “Core Inflation Slows Sharply In Win For Team ‘Transitory’”

My take on inflation, is to look back to Q2 2020 and review the decimated GDP price deflator stuff, which collapsed from Covid-19 shock. That really, really wasn’t that long ago and the nonlinear explosion of economic shocks (up & down) are not really (fully) digested yet — so I’m 100% in the transitory mindset, versus the short-term nervous nelly panic mindset.