The bump in total CPI in August was driven by the indexes for shelter (+0.3%) and energy (+1.9%).
Core CPI was pushed up primarily by the shelter index, yet a 1.6% decline in the apparel index and a 0.2% decline in the medical care index helped hold things in check.
On a year-over-year basis, total CPI was up 2.7%, versus 2.9% in July, and core CPI was up 2.2% versus 2.4% in July, which stood as the largest 12-month increase since September 2008.
The key takeaway for the market is that there was a moderation in the year-over-year growth rates for total CPI and core CPI. That won't alter the prevailing view that the Federal Reserve is likely to raise rates two more times this year, yet the moderation is apt to be seen as a data point that could keep the Federal Reserve from tightening rates too rapidly.| AUG | JUL | JUN | MAY | APR | |
|---|---|---|---|---|---|
| All Items | 0.2% | 0.2% | 0.1% | 0.2% | 0.2% |
| Food and Beverages | 0.1% | 0.1% | 0.2% | 0.0% | 0.3% |
| Housing | 0.3% | 0.2% | 0.0% | 0.2% | 0.3% |
| Equivalent Rent | 0.3% | 0.3% | 0.3% | 0.2% | 0.3% |
| Apparel | -1.6% | -0.3% | -0.9% | 0.0% | 0.3% |
| Transportation | 0.9% | 0.3% | 0.4% | 0.4% | 0.2% |
| Vehicles | 0.1% | 0.7% | 0.6% | -0.1% | -0.9% |
| Motor Fuel | 3.0% | -0.6% | 0.5% | 1.7% | 3.0% |
| Medical Care | -0.2% | -0.2% | 0.4% | 0.2% | 0.1% |
| Educ and Commun | 0.2% | 0.2% | 0.2% | 0.4% | 0.0% |
| Special Indices | |||||
| Core | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% |
| Energy | 1.9% | -0.5% | -0.3% | 0.9% | 1.4% |
| Services | 0.2% | 0.3% | 0.1% | 0.2% | 0.1% |
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