Inflation Rises Most Since September 2008

Summary

Inflation as measured by the “core” Consumer Price Index, which removes the volatile food and energy segments, jumped in August at the highest rate in 11 years, by 2.39%, a smidgen above the prior peaks of July 2018 (2.35%), February 2016 (2.33%), and April 2012 (2.32%).

The US is currently undergoing the second oil-and-gas bust since mid-2014, or same oil-and-gas bust, with two parts separated by a sucker rally. And so energy prices, which have a weight of 7.8% in the overall CPI, dropped 4.4% from a year ago, with gasoline and diesel prices falling 7.0%.

In August, the CPI for services rose by 2.70% compared to a year ago.

In terms of percent change, the CPI for durable goods in August ticked up 0.6% – the fastest increase since May 2012.

Continue reading