Inflation figures that are lower than expected give reason for optimism.
According to the latest Consumer Prices Index report from the Bureau of Labor, while consumers were slapped with further price rises in August, inflation dropped below predictions, providing promise for the ongoing economic recovery.
According to the data, inflation increased by 5.3 percent in the last year and by 0.3 percent in July. According to a Dow Jones survey, economists were expecting a 5.4 percent yearly increase and a 0.4 percent increase for the month, as reported by CNBC.
While monthly inflation was 0.3 percent, when energy and food are taken out of the equation, the percentage drops to 0.1 percent. Energy prices have climbed by 25% in the last year, while food prices have risen by 3.7 percent.
The price of gasoline increased by 2.8 percent, bringing the total cost of energy up by 2 percent for the month. Food expenditures increased by 0.4 percent, with rises of 0.4 percent for both at-home and away-from-home food.
Nonalcoholic beverages increased by 1%, meats, poultry, fish, and eggs increased by 0.7 percent, beef increased by 1.7 percent, and other food at home increased by 0.6 percent. Fruits and vegetables also increased by 0.2 percent, following a drop in July. Dairy product prices have dropped by 1%.
Meat, poultry, fish, and egg costs have all risen by 8% in the last year, while beef prices have risen by 12.2 percent.
Inflation on domestic furnishings and operations increased by 1.3 percent in August, while shelter prices increased by 0.2 percent.
New vehicles (1.2 percent), recreation (0.5 percent), and medical care all saw price rises this month (0.2 percent ).
In August, prices in the areas of consumer airline fares, used vehicles and trucks, and motor vehicle insurance all decreased.