Labor Department reported Friday that its closely watched Consumer
Price Index (CPI) posted a 0.2% increase in
August, half of the 0.4% rise in July, driven by a big slowdown in
energy costs, which edged up by 0.3% in August after a 2.9% surge in July.
which excludes the volatile energy and food sectors, also came in at 0.2%
increase in August. The core inflation over the past
12 months has risen by 2.8%, the biggest 12-month gain in nearly five
years and also above the Fed's comfort zone of 1% to 2%.
For August, food prices showed an
increase of 0.3%, after a gain of 0.2% in July.Clothing prices rose by 0.9%
in August. The index for housing, which rose 0.3% in July, increased 0.2%
in August. Medical care costs rose 0.4% in July and were 4.3% higher than
a year ago. Educational costs rose 0.7%, reflecting increases of 1.2% in
the index for college textbooks and 0.6% in the index for college tuition.
Airline fares, which had been rising sharply because of fuel costs, fell
by 1.9%, the biggest drop since last December.
Continue reading... "CPI Up 0.2%, Industrial Output Slipped 0.1%, Consumer Sentiment was up ... More Econ Indicators" »