August CPI rose .3%, in line with expectations but the core rate was flat vs the forecast of up .1%. CPI is up 1.1% y/o/y and .9% ex f&f. Keeping a lid on the core rate continues to be Owners Equivalent Rent, which makes up 25% of headline CPI and about 40% of the core. Aug OER was flat after the two prior months which saw .1% gains. The y/o/y fall in OER is .3%. Landlords are dealing with a soft economy and unsold homes being rented on one hand and a secular downward trend in the homeownership rate that will increase the amount of renters on the other. After 3 strong gains in apparel prices, they fell .1%. Commodity prices, which make up 40% of CPI, were up .5%, mostly led by energy and food. Bottom line, a flat core CPI gives the Fed the belief that they have a license to continue their extraordinary policies but here’s perspective, the CPI is up 29% over the past 10 yrs and is down .6% from its record high. And they call that deflation.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.