US Inflation Rate Falls Unexpectedly in August

The US annual inflation rate fell to 1.7 percent in August 2019 from 1.8 percent in the previous month and below market consensus of 1.8 percent.
BLS | Joana Ferreira | joana.ferreira@tradingeconomics.com 9/12/2019 12:49:03 PM
Food inflation stood at 1.7 percent in August, little-changed from 1.8 percent in July, as costs of food at home rose at a slower pace (0.5 percent vs 0.6 percent). Additional price increases were recorded for transportation services (0.9 percent vs 0.7 percent); medical care services (4.3 percent vs 3.3 percent); shelter (3.4 percent vs 3.5 percent); apparel (1.0 percent vs -0.5 percent); medical care commodities (0.1 percent vs -0.4 percent); new vehicles (0.2 percent vs 0.3 percent); and used cars and trucks (2.1 percent vs 1.5 percent).

Energy prices tumbled 4.4 percent in August, following a 2.0 percent drop in the previous month. Within energy commodities, gasoline cost declined 7.1 percent (vs -3.3 percent in July) and fuel oil went down 8.4 percent (vs -6.0 percent in July). Within energy services, electricity prices fell 0.1 percent (vs 0.5 percent in July) and utility (piped) gas service cost slid 3.5 percent (vs -2.9 percent in July).

The core inflation rate, which excludes volatile items such as food and energy, rose to 2.4 percent in August, the highest in a year and above market consensus of 2.3 percent.

On a monthly basis, consumer prices advanced 0.1 percent in August, after a 0.3 percent gain in July and in line with market forecasts. Increases in shelter and medical care prices offset a decline in energy cost.

US Inflation Rate Falls Unexpectedly in August