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