by Wolf Richter
CPI inflation remains at 12-year high.
What caught the media’s attention in today’s CPI inflation data was that the expectations by economists had finally risen enough to where CPI came in a notch “below expectations,” after having exceeded expectations for months, and often by a lot.
The Consumer Price Index for all Urban Consumers (CPI-U) rose 0.3% in August from July, and 5.3% compared to August last year, the third month in a row of 5%-plus year-over-year increases after having risen 5.4% year-over-year in July and June. The three months were the fastest increase in CPI since June 2008 (5.6%), and all four months were the fastest since January 1991, according to data released by the Bureau of Labor Statistics today: