The August consumer price index increased 0.2% in August, the same increase as in July, the U.S. Bureau of Labor Statistics reported Wednesday.
“August’s Consumer Price Index (CPI) report offers further evidence that inflation is moving toward FOMC’s target. The annualized three-month average for core CPI stands at 2.1%, despite the disproportionately high contribution from shelter, which lags behind actual market prices in reflecting the true cost of housing,” said America’s Credit Unions Senior Economist Dawit Kebede. “This supports the argument that the Federal Reserve may not need to maintain a restrictive monetary policy, especially as the labor market shows signs of weakening, which could jeopardize a soft landing if interest rates stay elevated for too long.”
