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Consumer Prices in U.S. Increase by Less Than Forecast

Economic IndicatorsSep 14, 2021 08:36AM ET
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© Bloomberg. Customers shop for boots in Fort Worth, Texas. Photographer: Kathy Tran/Bloomberg

(Bloomberg) -- Prices paid by U.S. consumers rose in August by less than forecast, suggesting that some of the upward pressure on inflation is beginning to wane.

The consumer price index increased 0.3% from July, according to Labor Department data released Tuesday. Compared with a year ago, the CPI rose 5.3%. Excluding the volatile food and energy components, so-called core inflation climbed 0.1% from the prior month and 4% from August 2020.

Follow the reaction in real-time here on Bloomberg’s TOPLive blog

Economists in a Bloomberg survey called for a 0.4% increase in the overall CPI from the prior month and a 5.3% gain from a year earlier, based on the median estimates.

Faced with mounting cost pressures as a result of materials shortages, transportation bottlenecks and hiring difficulties, businesses have been boosting prices for consumer goods and services. While price spikes associated with the economy’s reopening are beginning to abate, tenuous supply chains could linger well into 2022 and keep inflation elevated.

A Federal Reserve Bank of New York survey showed Monday that consumers expect inflation at 4% over the next three years, the highest in data back to mid-2013.

The CPI data precede next week’s Federal Open Market Committee meeting, where Fed officials will debate how and when to begin tapering asset purchases. Fed Chair Jerome Powell said last month that the central bank could begin reducing its monthly bond purchases this year, but didn’t give a specific time line.  

Parts shortages that have driven up input costs are restraining production. In the last week, Toyota Motor (NYSE:TM) Corp. and 3M Co. both downgraded their outlooks for car output due to semiconductor shortages, while Nestle said it is introducing even bigger price hikes as commodity and transportation costs surge. 

Meantime, Hurricane Ida halted operations at refineries and petrochemical plants in the south, adding to pandemic-related supply chain bottlenecks and likely price pressures as well.

©2021 Bloomberg L.P.

Consumer Prices in U.S. Increase by Less Than Forecast
 

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Comments (26)
Dave Jones
Dave Jones Sep 14, 2021 3:41PM ET
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who ever wrote this garbage doesn't have the kahunas to put their name on it
Iyarin Boonnum
Iyarin Boonnum Sep 14, 2021 11:59AM ET
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Absolutely cheating figure, my friend told me everything so expensive, inflation was 10% higher in each month now!!! You can not trust us govt anymore!!
Iam Suleman
YesomiteSam Sep 14, 2021 9:35AM ET
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I got to find out which grocery store labor department shops so I can reduce my grocery bill which has gone up by 20% from last year for same or even less amount of groceries.  .03 % and .01% excluding food and energy, give me a break you cheating liars.
Pratt Man
Pratt Man Sep 14, 2021 9:34AM ET
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If you go back three years and look at the absolute prices of the basket of goods they use too calculate this, and then compare it to today... there was no unusual inflation, over three years. The data shows deflation during the pandemic and then a catch-up to the normal tend line over the past year. Can we were put this to rest now?
Darryl Allen
Darryl Allen Sep 14, 2021 9:34AM ET
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downvoted for facts lol
Mark Oster
Mark Oster Sep 14, 2021 9:31AM ET
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"Excluding volatile food and energy", I hate when they do that.
Mark Oster
Mark Oster Sep 14, 2021 9:30AM ET
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"Excluding volatile food and energy", I hate when they do that.
Al Smith
Al Smith Sep 14, 2021 9:29AM ET
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yeah... Prices increase "less than forecast"....  while inflation is at an already extremely high level.  A smaller % of a higher number is a larger increase.  Simple math.... but who cares?  We have Jerome Powell still to feed us Lamborghinis.
Bilal Khan
Bilal Khan Sep 14, 2021 9:27AM ET
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How are you all
Olukayode Rotimi
Olukayode Rotimi Sep 14, 2021 9:27AM ET
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very well
George Pichurov
George Pichurov Sep 14, 2021 9:27AM ET
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And this is the country that prossecuted drugs...
kangroo kiloo
kangroo kiloo Sep 14, 2021 9:15AM ET
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no inflation as if dollar is now toilet paper
Hanna Christin
Hanna Christin Sep 14, 2021 9:15AM ET
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Transitory
Jon Bal
Jon Bal Sep 14, 2021 9:06AM ET
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it's the 'not as bad as expected = good' spin
John Lakran
John Lakran Sep 14, 2021 9:06AM ET
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yup we expected 4% and it's 3.9% yoy, yeah buy buy buy. Green premarket will end end
Faread Samemy
Faread Samemy Sep 14, 2021 9:02AM ET
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Algos don't care about fake news, buy with the crowd
Chuck Anderson
Chuck Anderson Sep 14, 2021 9:01AM ET
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the media spins this as " no inflation" BS...lol
Saint Augustine
Saint_Augustine Sep 14, 2021 8:59AM ET
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Bears talking about fake numbers. You should go long on food stamps. LOL
Ji Go
Ji Go Sep 14, 2021 8:53AM ET
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Inflation slowing down but somehow my $100 keeps buying less at the grocery store. Seems legit.
freedom byforce
freedom byforce Sep 14, 2021 8:53AM ET
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yea I have no idea what deflation is I've never seen it in my lifetime. yet a growing number of people talk like I have and will see it.
Josh Davis
Josh Davis Sep 14, 2021 8:53AM ET
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freedom byforce shrinkflation is a good term
Walter Rikhotso
Walter Rikhotso Sep 14, 2021 8:53AM ET
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This was just to confuse people with this inflation data reports I already knew what's gonna happen based on the US economy with Biden and Trump
Danny Danny
Danny Danny Sep 14, 2021 8:52AM ET
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Fake data.  Inflation is much higher.
mike jonex
mike jonex Sep 14, 2021 8:50AM ET
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Data is in, it is good, now buy the dip like they say.
Jeffry Milan
Jeffry Milan Sep 14, 2021 8:48AM ET
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🤔🤷super manipulated inflation data
Nick Burns
Nick Burns Sep 14, 2021 8:45AM ET
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just shut up and buy the dip stupid lol
Nick Burns
Nick Burns Sep 14, 2021 8:45AM ET
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this was not directed at anyone just in general
Muhammed James
Muhammed James Sep 14, 2021 8:45AM ET
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so you recon buy...
Muhammed James
Muhammed James Sep 14, 2021 8:45AM ET
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reckon*
Nick Burns
Nick Burns Sep 14, 2021 8:45AM ET
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was joking sorta but currently we are at the edge if we end up green today on s&p yeah I'd say buy otherwise 43 4200 here we come
Michael Crowley
Michael Crowley Sep 14, 2021 8:43AM ET
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Making up the data doesnt make it true
Ricardo Diogo
Rcd72 Sep 14, 2021 8:43AM ET
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fake numbers....
Eloy Rodrigo
Eloy Rodrigo Sep 14, 2021 8:42AM ET
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I am one of the last person to question the inflation numbers, but I'm sorry, something is pretty wrong here.The numbers presented don't match with the streets.
taylor jason
taylor jason Sep 14, 2021 8:42AM ET
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the street number include food/energy
Frank Francone
Frank Francone Sep 14, 2021 8:42AM ET
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All is manipulated to allow Powell to print more. This is insane
samuel low
samuel low Sep 14, 2021 8:42AM ET
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Agreed…. Something is rotten in the state of Denmark
Laid Zipleen
Laid Zipleen Sep 14, 2021 8:40AM ET
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and next month " more than expected " ...
 
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