Consumer prices (CPI) rose 0.3% in August and 5.3% in the past 12 months, according to data released Tuesday by the Labor Department. The indicators fell for the second consecutive month, after an increase of 0.5% in July and 0.9% in June.
Because it is important? Financial authorities expected inflation to decline slightly after summer travel, and leisure spending drove prices to remarkably high levels, following steep declines in 2020.
- A monthly survey of investors by Bank of America revealed that growth expectations are at their lowest point since May 2020.
- The Federal Reserve could find itself with slower economic growth accompanied by higher inflation expectations, Gergely Majoros, a member of Carmignac’s Investment Committee told NBC.
The data: Annual CPI growth also fell from a 5.4% rate in July, the highest since August 2008.
- Without food and energy prices, which are more volatile, the CPI increased 4% in the last 12 months.
- Economists forecast the CPI to grow 0.4% last August.
Main source of the news: The Hill