US Inflation Rises |
US inflation rose 8.3% year-over-year in August, a 0.1% increase over July after analysts predicted inflation would fall slightly. The growth is primarily driven by price increases in shelter (+0.7%), food (+0.8%), and medical care (+0.8%). The food index, rising 11.4% year-over-year, presents the highest increase since May 1979. Sharp declines in gas prices (-10.6%) and energy (-5%) helped to offset the increases. See data in charts here.
The consumer price index is a proxy for inflation that tracks the price of a basket of goods and services. Higher inflation means consumers can buy fewer goods with each dollar they spend (see 101). The core consumer price index, which removes volatile food and energy prices, rose 0.6% last month or 6.3% year-over-year. Analysts expect the Federal Reserve to continue aggressively raising interest rates, with a meeting scheduled next week.
US stock markets saw the largest one-day losses since June 11, 2020, with the Nasdaq down 5.2% at close, the S&P 500 down 4.3%, and the Dow Jones Industrial Average down 3.9%. |
