Inflation Is Still Hot

New York Times: “Fresh inflation data released on Tuesday showed that price gains did not moderate as much as anticipated in August, unwelcome news for the Biden administration and the Federal Reserve and a sign of the extent to which fast-climbing costs continue to plague consumers.”

“Prices rose 8.3 percent from a year earlier, a rapid pace of increase for consumers and not as much of a slowdown as economists had expected, even as gas prices dropped and weighed on the overall numbers. At the same time, so-called core inflation re-accelerated notably in August. That measure strips out volatile food and fuel prices to give a better sense of underlying trends, and it tracks products like clothing and furniture along with an array of services.”

This is much worse than anyone anticipated and suggests inflation will remain the top focus of policymakers.