Inflation Heated Up in August

The government released the August inflation report this morning, and for the first time in several months, inflation actually came in higher than expected. The headline rate rose by 0.4% which was 0.1% higher than economists had been expecting.

Obviously, Hurricane Harvey impacted some of that. Gasoline prices were up 30 cents last month. But even the “core rate,” which excludes food and energy prices, was up 0.2% last month.

I still don’t think the Fed will hike rates in December, but the futures market is now about 50-50 on that.

Here’s the headline rate:

Here’s the core rate:

Posted by on September 14th, 2017 at 10:52 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.