WASHINGTON—Overall consumer prices rose 0.4% on a seasonally-adjusted basis during August, with the Bureau of Labor Statistics also reporting the overall consumer price index (CPI) grew 1.3% over the 12-month period.
"Reports of plummeting housing prices in some urban areas have either not shown up yet in the CPI aggregate or are being offset by increases in suburban areas," said NAFCU Chief Economist and Vice President of Research Curt Long. "The outlook for consumer demand is uncertain at best, given the enormous contraction in fiscal support for households. Inflation is unlikely to be problematic for the Fed anytime soon, and the benchmark federal funds rate is expected to remain at zero for several years.”
Energy prices rose 0.9% during the month, following a 2.5% rise in July. Long noted that despite the increases, they are well-below year ago levels (-9.1%). Food growth was up 0.1% in August and rose 4.1% on a year-over-year basis.
Core prices (excluding food and energy costs) rose 0.4% in August. Year-over-year core CPI growth was 1.7%.