Warm CPI Report Suggests Fed’s Job Not Quite Done
Core inflation in the US was a little warm last month, hotly-anticipated data released on Wednesday showed.
The 0.3% increase on the core gauge topped estimates. Economists expected a third consecutive 0.2% increase.
As expected, the headline all-items index rose 0.6% from July, the briskest pace since inflation peaked in June of 2022.
Unrounded, the MoM core and headline prints were 0.2785% and 0.63119%, respectively. The YoY readings were 4.3% and 3.7%, in-line with estimates.
Obviously,
n.b. I appreciate your reporting the unrounded numbers to 2/3 decimals. That’s much better color than the rounded data.
What’s driving the super-core rise/resilience? Someone pointed to airfares, but that’s extremely oil related, I imagine?
I don’t mean to be fussy but the government’s report of inflation to four and even five decimal points is just ridiculous. They need to go back to school and learn about the concept of significant digits. One decimal point is just fine, even two in some cases; five is simply ridiculous. We don’t know enough about the underlying reality to report this junk.
Energy inflation is outside of the Fed’s control.
I am all for reducing pollution but I do not understand the current US policy of cutting back on domestic oil production without an alternative source- other than paying more for oil that someone else is drilling.
Saudi speaking historically “derives pleasure from keeping everyone on their toes” in regards to output. We bail them out in 1991 and they make us dance in 2023. We point our guns at each other while they shoot at our feet. Fun times.