Inflation Defies Predictions as CPI Edges Upward
From Industry Week –
Despite a steep month-over-month drop in gas prices, the Bureau of Labor Statistics’ CPI rose by 0.1% in August instead of falling as predicted.
In a blow to efforts to contain inflation, the Consumer Price Index rose 0.1% in August, defying predictions by economists that it would fall more than ten times that figure. The year-over-year inflation rate fell from 9.1% in June and July to 8.5%—half a percentage point higher than predicted by a MarketWatch consensus forecast released earlier this week.
While the price indexes for gasoline and fuel oil both fell by more than 10%, prices for most other items—including food, new vehicles, shelter, and medical care—generally increased by roughly 0.8% to 1% each. Compared to August 2021, prices for food are up 11.4% and energy prices are up 23.8%
“Core prices” for less-volatile goods like food, electricity and gas are 6.3% higher than they were last year, up from 5.9% in the twelve months before July 2022. Compared to this time last year, prices for new vehicles are up 10.1%, prices for furniture and home goods are up 9.9%, and prices for used cars and trucks are up 7.8%.
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