Updated: 11-Sep-24 09:21 ET

August CPI

Updated: 11-Sep-24 09:21 ET

Highlights

• Total CPI increased 0.2% month-over-month in August, as expected.
• Core-CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus 0.2%), led by a 0.5% increase in the shelter index.
• On a year-over-year basis, total CPI was up 2.5% -- the smallest 12-month increase since February 2021.
• Core-CPI increased 3.2% over the last 12 months, unchanged from July.

Key Factors

• The food index increased 0.1% month-over-month and was up 2.1% year-over-year.
• The energy index was down 0.8% month-over-month and down 4.0% year-over-year.
• The shelter index was up 0.5% month-over-month and up 5.2% year-over-year.
• The new vehicles index was flat month-over-month and down 1.2% year-over-year.
• The used cars and trucks index was down 1.0% month-over-month and down 10.4% year-over-year.
• The all items index less shelter was up 1.1% year-over-year.
• The services index less rent of shelter was up 4.3% year-over-year.

Big Picture

• The key takeaway from the report is the understanding that core inflation is sticking stubbornly above the Fed's inflation goal of 2.0% which, to be fair, is oriented around the PCE Price Index. Still, the elevated core reading on a monthly and annual basis will be a focal point for the Fed and a likely reason to keep a September rate cut capped at 25 basis points.

Category	AUG	JUL	JUN	MAY	APR
All Items	0.2%	0.2%	-0.1%	0.0%	0.3%
Food and Beverages	0.1%	0.2%	0.2%	0.1%	0.0%
Housing	0.3%	0.4%	0.2%	0.3%	0.2%
Equivalent Rent	0.5%	0.4%	0.3%	0.4%	0.4%
Apparel	0.3%	-0.4%	0.1%	-0.3%	1.2%
Transportation	0.1%	-0.1%	-1.3%	-1.1%	0.7%
Vehicles	-0.2%	-0.7%	-1.0%	0.0%	-0.8%
Motor Fuel	-0.6%	0.0%	-3.8%	-3.6%	2.8%
Medical Care	-0.1%	-0.2%	0.2%	0.5%	0.4%
Educ and Commun	0.1%	0.2%	-0.1%	0.0%	0.2%
Special Indices
Core	0.3%	0.2%	0.1%	0.2%	0.3%
Energy	-0.8%	0.0%	-2.0%	-2.0%	1.1%
Services	0.3%	0.3%	0.1%	0.2%	0.4%