![]() ![]() ![]() Some economists believe inflation risks are tilted to the upside in the near term, citing rising insurance costs, especially for motor vehicles. Since March 2022, the central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range. The core CPI advanced at a 2.4% annualized rate in the last three months, the slowest pace since March 2021, a sign of progress towards the Fed's 2% target.įinancial markets continued to see less than a 50% chance of the Fed raising rates again this year, according to CME Group's FedWatch tool. That was the smallest year-on-year rise since September 2021 and followed a 4.7% gain in July. In the 12 months through August, the core CPI increased 4.3%. Services less rents jumped 0.5% after gaining 0.2% in July. But the cost of hotel and motel accommodation declined 3.6%. Airline fares rebounded 4.9%, reflecting higher jet fuel prices. Owners' equivalent rent (OER), a measure of the amount homeowners would pay to rent or would earn from renting their property, climbed 0.4% after rising 0.5% in July.Ī further cooling in rents is expected as more apartment buildings come on the market. Services were mostly lifted by a 0.3% rise in the cost of shelter. That was underscored by core services, which rose 0.4% for the second month in a row. The small decline suggests that progress towards low inflation would be slow. ![]() Core goods prices dipped 0.1% after decreasing 0.3% in July. New motor vehicle prices rebounded 0.3%, the largest gain since March, helping to slow down the pace of goods deflation. ![]()
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