Following fuel-driven jump in Producer Prices, consensus was for a concomitant jump MoM in Consumer prices this morning, after last month’s decline as energy prices have rebounded (though we warned that amid all the interventionist-y chatter, nothing would surprise us less than ‘cool’ print to offset the PPI scare).
And analysts were right with headline CPI rising 0.4% MoM (exactly as expected) – biggest MoM since May – but prices rose 3.5% YoY (in line with expectations and flat to the prir month)…
Core Services accelerated…
…BUT Fuel prices dominated the rise in headline CPI…
Headline CPI rose 0.4% MoM in August, after rising 0.1% in July. Over the last 12 months, the all items index increased 3.4%.
- The index for energy increased 2.1 percent over the month: The index for gasoline rose 3.9% in August, accounting for over one third of the monthly all items increase.
- The shelter index rose 0.3 percent in August after rising 0.1 percent in July.
- The index for food increased 0.1 percent over the month, as the index for food away from home increased 0.3 percent.
Just like we saw yesterday with PPI, the rebound in crude (and refined product) prices snapped CPI’s Energy component notably higher…
Energy helping on a 6m annualized basis but hurting on a 3m annualized basis…