by Alexander William Salter
The American Institute for Economic Research
Price growth was moderate in August, the Bureau of Labor Statistics reports. The Consumer Price Index (CPI) rose 0.2 percent last month and 2.5 percent over the past year. On a continuously compounded basis, prices grew at an annualized rate of 2.24 percent in August. Core CPI, which excludes volatile food and energy prices, grew slightly faster at 0.3 percent per month and 3.2 percent per year. The continuously compounded annual rate was 3.37 percent in August.
Inflation rose slightly over the past two months, but not by enough to undermine the general disinflationary trend. Dollar depreciation is back within a steady range. The Federal Open Market Committee (FOMC) will likely infer from this data that it’s time to loosen monetary policy.