Know The Difference Minute

The 8.5% year-over-year rise came in under the estimate and down from last month’s 9.1% gain.

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Inflation nation.
Welcome to the Know the Difference Minute for Wednesday, August 10th.
CPI, or Consumer Price Index tracks pricing for a basket of goods and services. The 8.5% year-over-year rise posted this morning came in under the 8.7% estimate and down from last month’s 9.1% gain. Much of the decline came from the drop in gasoline prices, down 7.7%. Overall, energy prices were off by 4.6%.
On one side, consumers are paying less for gas, they are getting nailed at the grocery store. The food index put the 12-month increase to 10.9%, the fastest since 1979.
This CPI report could take some heat off the Fed which was thought to be leaning toward a 3rd consecutive 75 basis point interest rate hike in September. Following today’s report, traders are now anticipating a better chance of a lesser 50 basis point move. Markets responded positively today.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.