Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
--Owners Equivalent Rent +0.2%; Medical Care Index +0.7%
--Energy Prices Down -1.9% Following 1.3% Gain in August
By Brooke Migdon
WASHINGTON (MNI) - The August CPI data were a tad stronger than
expected though energy prices were a drag on headline inflation, data
released Thursday by the Bureau of Labor Statistics showed.
Overall CPI slowed to a 0.1% gain, in line with market
expectations. Core prices rose 0.3%, coming in above a market median
which had called for a 0.2% increase. Year/year core prices rose to 2.4%
following a 2.2% reading in July, the highest since July 2018.
The year/year rate slowed moderately to 1.7% from the 1.8% gain
posted in July. Excluding only energy, the year/year rate was 2.3%,
reflecting weakness in August energy prices.
Here are some of the key takeaways from the data released Thursday:
- The core CPI reading was 0.256% unrounded, on the low end
of a 0.3% reading.
- The major core components saw widespread increases. The medical
care index rose 0.7% and was the largest contributor to the August
increase in core CPI. The large owners' equivalent rent category
increased 0.2%, bringing the year/year rate up to 3.3%. Recreation
prices rose for the first time in two months, climbing 0.5% after a flat
reading in July. Used vehicle also prices jumped 1.1%. New vehicle
prices, however, declined for a second consecutive month by -0.1%.
- Energy prices plummeted by 1.9% in August following a 1.3%
increase in July. Gasoline prices lead the decline, falling 3.5%, as
expected based on negative data from the August AAA and PPI reports.
Electricity prices also fell, decreasing by 0.3%, but gas utilities
prices bounced back from a disappointing July, increasing by 0.1% after
a 1.8% decline. Excluding only energy, CPI was up 0.2%.
- Food prices posted a third consecutive flat reading in August,
with the declining costs of fresh produce, meats and eggs offsetting a
large increase in dairy prices. Excluding only food, CPI would still
have been up 0.1%.
- Apparel prices slowed by 0.2% in August, but incoming China
tariffs now target U.S. consumer goods, threatening to should push up
costs in the near future.
** MNI Washington Bureau: 202-371-2121 **