Inflation Whac-a-Mole: New Vehicle Prices Spike as Used Vehicle Prices Dip, While Housing Inflation, Which Exploded in Reality, Barely Budged in the CPI

by Wolf Richter
Wolf Street

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:

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