Refinitiv Newscasts - U.S. inflation shows signs of peaking in August

CPI SA

14/09/2021 17:17

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Source: Reuters

Description: A measure of U.S. consumer inflation increased at its slowest
pace in six months in August, suggesting the red-hot pace of inflation seen
earlier this year may have peaked, though prices are likely to remain high due
to supply constraints. Conway G. Gittens has more.
Short Link: https://refini.tv/3za9Eop

Video Transcript:

Consumer inflation came in weaker than expected in the United States in
August, fueling hopes that the heady price gains seen earlier this year are
moderating. Data released Tuesday showed the US consumer price index,
excluding food and energy, rose just 0.1% in August, that was the slowest
price rise in six months. The so-called 'core rate' posted an annual increase
of 4% through August, which is tamer than the 4.3% seen in July. Including all
items, the CPI rose 5.3% on a year-on-year basis after soaring to a 13-year
high during the summer. Last month's moderation in inflation was due in part
to the first drop in used car and truck prices in six months. Airline fares
and hotel prices were down in August. And prescription drug prices were also
lower month-to-month. Even in categories where prices were up in August, the
gains were smaller, with the exception of energy and apparel. All in all, the
tamer inflation number adds support to the Federal Reserve's belief that the
recent wave of inflation is "transitory." And that could pave the way for the
Fed to not announce any changes to its massive bond-buying program when it
meets next week