United States: Inflation slows in August
September 17, 2013
In August, consumer prices rose 0.1% over the previous month in seasonally-adjusted terms, which was slightly below the 0.2% increase recorded in July. The result, which was in line with market expectations, reflects that price decreases in other categories were offset by higher prices for fuel.
Annual inflation fell from 2.0% in July to 1.5% in August. The core inflation index, which excludes food and energy, dropped from 0.2% in July to 0.1% in August, contrasting market expectations of no change. Annual core inflation increased slightly to 1.8% (July: 1.7% year-on-year). Annual average inflation inched down from 1.9% in July to 1.8% in August.
FocusEconomics Consensus Forecast participants expect inflation to average 1.5% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel expects average inflation to rise to 1.9%.
Author: Carl Kelly, Economist