Prices were up 0.1% from July as a range of products and services, including dining away from home, new cars, dental care and auto repairs, surged. Given how much gas prices fell in August, the price index was projected to fall monthly.
What is inflation? Inflation is the loss of purchasing power over time. So your dollar won’t go as well tomorrow as it did today. It is usually expressed as annual changes in the prices of commodities and services such as food, furniture, apparel, transportation and toys.
As a result, inflation has maintained amazing potential momentum, which is bad news for Fed officials. Central banks have sought a sustained slowdown in inflation as evidence that policies are working to cool demand and return the economy to a healthy environment in which inflation is slowly stabilizing and barely noticeable. .
Until that happens, officials have promised to continue raising rates rapidly, which could slow borrowing, curb consumer demand, and slow job and wage growth.
“Inflation is too high. “This is a battle we can’t walk away from, and we’re not going to walk away from.”
So far, there are few signs that the Fed’s efforts are depressing consumer or business demand. Growth has slowed, but has not plummeted, and both employment and wage growth remain rapid. Last month, employers added 315,000 jobs to him. Job Information Remaining at a high level, consumer spending has continued to rise, albeit decelerating, this summer.
“Inflation remains hot, financial conditions have improved somewhat and the labor market is doing well,” Neil Dutta, head of the U.S. economy at Renaissance Macro, wrote in a post-release research note. “If the goal is to slow things down and create some pain, the Fed is failing by its own standards.”