The August Consumer Price Index (CPI), which measures changes in prices paid by consumers for goods and services, was released earlier today for the month of July and increased 0.2% m/m and +2.9% y/y which compared to June which showed a m/m decrease of -0.1% and a y/y change of +3.0%. Shelter which accounts for over 1/3 of CPI has remained the most persistent component and increased +0.4% m/m and +5.1% y/y. This offset Gasoline which was unchanged m/m but down -2.2% y/y and Used Vehicles which were -2.3% m/m and down 10.9% y/y.
The table below shows m/m percentage changes in CPI indexes including All Items, Food, Energy in addition to the Core CPI, which excludes Food and Energy.
One of the two major focuses of the Federal Open Market Committee (FOMC) is price stability, which is running well above the target range of 2%. Per the Federal Reserve’s July 31st news release, members reemphasized their commitment to using the tools at their disposal to try and tackle inflation. The FOMC’s next decision regarding fed fund rates will be announced on September 17-18, 2024. The CPI summary for August is scheduled for release on September 11th, 2024.
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