US August CPI +5.3% y/y vs +5.3% expected

Author: Adam Button | Category: News

Highlights of the US August 2021 CPI report

Highlights of the US August 2021 CPI report
  • Prior was +5.4%
  • m/m CPI +0.3% vs +0.4% expected
  • Prior m/m reading was +0.5%
  • Real weekly earnings +0.3% vs -0.1% expected
  • Full release (pdf)
Core inflation:
  • Ex food and energy +4.0% vs +4.2% y/y expected
  • Prior ex food and energy +4.3%
  • Core m/m +0.1% vs +0.3% exp  -- lowest since Feb
  • Prior core m/m +0.3%
These numbers are broadly lower than anticipated and the US dollar is down across the board in response by around 20 pips.

The year-over-year chart (above) is starting to look like a covid case count chart that's beginning to roll over. That's exactly what the Fed is looking for via its 'transitory' narrative.

More details:
  • Used cars -1.5% m/m vs +0.2% prior
  • Used cars +31.9% y/y
  • New vehicles +1.2% vs +1.7% m/m prior
  • New vehicles +7.6% y/y
  • Shelter +0.2% vs +0.4% m/m prior (this skews a bit lower because of falling hotel prices)
  • Energy +2.0% m/m vs +1.6% m/m prior
  • Energy +25% y/y
  • Food +0.4% m/m vs +0.7% prior
  • Airline fares -9.1% m/m



Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose