July’s core PCE inflation reading was 4.2% annually, while headline PCE inflation was 3.3%, which was driven by an uptick in prices for services rather than goods. Contrastingly, nonfarm payrolls increased by 187,000 for the month, which was well above the Dow Jones forecast of 170,000.Īs for the personal-consumption expenditures price (PCE) index, headline and core inflation for July increased, but precisely in line with economists’ expectations. The August unemployment rate was at 3.8%, a high not seen since February 2022. It’s another sign the red-hot labor market is finally weakening, in line with other recent data we’ve seen on jobs. Actual average hourly earnings declined by 0.5% for the month but are still 0.5% higher than the same time last year. On the same day, the Labor Department released new data on worker earnings, which unveiled a jump in headline inflation hit American pay packets. Consensus predictions had been for a 0.2% monthly increase and a 4.3% annual rise. For August, the gauge rose 0.3% over the month and decelerated to a 4.3% annual pace, which is the lowest core inflation reading since September 2021. However, core inflation was the real winner of the report. But there was also an increase in transportation and medical care sector costs in August, with the former rising by 2%, and airfares jumped by 4.9%, though they’re still down 13.3% from the same time last year. Used car prices, which had been a concerning factor in pushing up inflation, declined by 1.2% and are down 6.6% for the year. Gas prices and shelter costs are explainable. ![]() Owners' equivalent rent, a metric that assesses what homeowners could achieve for renting their home, climbed by 0.4%, which is a 7.3% yearly increase. The rent of primary residence index increased by 0.5% and rose by 7.8% compared to a year ago. ![]() Shelter costs continue to be a driver, rising 0.3% over the month and marking a 40th straight month of gains.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |