Inflation comes in hotter than expected at 8.3% annual rate in August

[mystery-ak]

Inflation comes in hotter than expected at 8.3% annual rate in August
by Zachary Halaschak, Economics Reporter
September 13, 2022 08:31 AM

Inflation ticked down to 8.3% for the 12 months ending in August, according to the consumer price index, hotter than expected but still a decline from the month before.

The much-anticipated numbers reported by the Bureau of Labor Statistics on Tuesday revealed that while it ticked down, inflation is still high despite the Federal Reserve's aggressive interest rate hikes. July’s headline CPI reading clocked in at 8.5%.

The soaring inflation has eaten into President Joe Biden’s approval ratings as he and Democrats approach the midterm elections.

So-called core CPI, which strips out volatile food and energy prices, increased by 0.6% in August, more than expected and more than the previous month. The figure shows that inflation is still a huge concern for the Fed and for households.

The gasoline index fell 10.6% in August, which offset increases in food and shelter costs. The energy index fell 5% on the month but is still up a sky-high 23.8% for the 12 months ending in August. Food prices increased more than 11% during that same period, according to the report.

"The new numbers contradicted expectations of ongoing inflation moderation," Victor Claar, an economics professor at Florida Gulf Coast University, told the Washington Examiner. "Core inflation was the largest surprise today. ... While gas prices have been falling, they’re not falling fast enough to overcome other price inflation in most consumer spending categories. Working families aren’t seeing any relief yet."

Consumer prices have been rising fast since last August, especially for staples such as food and gas.

more
https://www.washingtonexaminer.com/policy/economy/inflation-comes-in-hotter-than-expected-at-8-3-annual-rate-in-august

[Hoodat]

Hotter than expected?  How could they not expect this after pouring another $1 trillion of newly printed money onto the inflation fire?  Idiots.

[Hoodat]

inflation is still high despite the Federal Reserve's aggressive interest rate hikes. July’s headline CPI reading clocked in at 8.5%.

Instead of rate hikes, perhaps the Federal Reserve should put a stop to printing up new money and handing it to government, never to be paid back.

[cato potatoe]

Considering gas fell 24% from its peak by end of August, this is quite alarming.  The monetary expansion is still driving up prices everywhere except real estate, which had simply outpaced everything else.  The fed is going to let it continue, or deepen the recession with high unemployment.

[Hoodat]

Considering gas fell 24% from its peak by end of August, this is quite alarming.  The monetary expansion is still driving up prices everywhere except real estate, which had simply outpaced everything else.  The fed is going to let it continue, or deepen the recession with high unemployment.

When a person loses a job, they no longer need gas to drive to work.  But they still have to eat.  Recessions are going to bring down fuel prices.  But that does not necessarily translate into lower prices for everything else.

[mystery-ak]

Annual Inflation Slows, but Core Prices Are Rising in August CPI Report
By Joe Cunningham | Sep 13, 2022 8:53 AM ET

Coming down a bit since a four-decade high in June, the August Consumer Price Index report puts national inflation at 8.3 percent, a slight drop driven primarily by sharply falling gas prices throughout the month. However, there are still inflation concerns as the price of food continues to rise throughout the country.

The good news for consumers is that gas prices have fallen roughly 26 percent since last month. Airfare is also down as summer travel wound down and students began returning to school.

But, according to the Wall Street Journal, a primary area of concern is still rising food prices. As a result, while the annual number may be down, month-to-month inflation rose 0.1 percent.

    Still, food prices continued to climb this past month and prices for a range of goods and services remained much higher than a year earlier, the figures show.

    “Consumers are getting relief at the pump and there should be further relief coming at the gasoline station and the grocery store, since one of the biggest costs of food is transporting it,” said Ryan Sweet, senior director of economic research at Moody’s Analytics.

    Broad price pressures have proven resilient, causing the Federal Reserve to keep raising interest rates to fight inflation, said Kathy Bostjancic, chief U.S. economist at Oxford Economics.

    “Inflationary dynamics are improving and moving in the right direction,” she said. “But they’re still running way too hot for comfort, either for individuals and businesses or the Federal Reserve.”

https://twitter.com/byHeatherLong/status/1569670264278990850

more
https://redstate.com/joesquire/2022/09/13/breaking-inflation-drops-slightly-but-food-prices-still-on-the-rise-n626664

[mystery-ak]

Hotter than expected?  How could they not expect this after pouring another $1 trillion of newly printed money onto the inflation fire?  Idiots.

I heard yesterday that the Admin thought today's numbers were going to be good...well let them crow about 8.3 inflation

Dow is down over 720 now

[catfish1957]

For the people really wanting the truth, if you discount the latest downtick in gasoline prices, inflation is still in the 15-18% area.

And the actual annualized CPI is about 12-16%.  Your government is continually lying to you, especially as we approach the midterms.

[GtHawk]

Meanwhile, Brandon is telling everyone living outside of his fantasy world