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Inflation fell in August to its lowest level in over three years.
The consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% in August from the prior month, in line with the expectations of economists polled by LSEG.
Prices climbed 2.5% in August from the same time last year, slightly less than LSEG estimates and down from 2.9% in July. That's the lowest level since February 2021. But, Bankrate's Greg McBride says you have to read the fine print.
“Despite the renewed consistency of improvement in inflation, the other consistency is that costs for shelter and motor vehicle insurance continue to rise at an outsized pace on both a monthly and annual basis. Rents are up 5 percent over the past year, outpacing growth in average hourly earnings, and motor vehicle insurance is still up a staggering 16.5 percent from one year ago.”
In other words, inflation has not been tamed yet.