Key Points
Inflation accelerated in August with the consumer price index growing at a 4.9% seasonally adjusted annualized rate (SAAR), up from 0.9% in July.
- Even excluding volatile food and energy components, prices were growing at a 3.5% SAAR.
Core CPI Inflation
Looking beneath the headline rates to the highly inertial and closely-watched core services components, the news was more positive.
- Around half of the +0.33% month-over-month increase in prices was attributable to one component: wireless phone services.
- Excluding wireless phone services and airfares (which are closely related to energy prices), annualized inflation has been below or near the 2016 – 2019 average rate in 7 of the past 8 months.
CPI: Core Services Inflation
