What did the latest CPI number tell us?

The most visible 20% of spending is moving higher. 

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A weak core
Welcome to the Know the Difference Minute for Thursday, August 10th.
July inflation numbers were slightly better than expected. Monthly inflation was a tame 0.2%. Consumer prices have risen 3.2% from a year ago. These numbers are headed in the right direction, though there are likely going to be some speed bumps and potholes along the way.
Food prices are rising, again, due to bad weather and Russia exiting Ukraine’s grain shipment agreement.
Energy prices are also moving higher with OPEC production cuts and increased driving.
How important food and energy are depends on your spending habits, but for the average household, food is 13% of spending and energy is 7%.
The most visible 20% of spending is moving higher. However, about 80% of what people spend their money on, which is called the core, is showing weaker inflation. This is a rare case of a weak core being a good thing.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.