Finance

US Inflation Accelerates for Second Straight Month

SEP 13 2023·Updated SEP 15 2023

Story

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The Facts

US inflation rose 3.7% in August compared to last year, accelerating for the second consecutive month. In July, year-over-year inflation rose 3.2%, while monthly inflation was up 0.2% compared to 0.6% in August.
NBC
The Dept. of Labor’s Consumer Price Index (CPI) — which measures the costs of various goods and services — on Wednesday showed rising energy and gasoline prices, which were the main contributors to the rise in inflation.
CNN
Although inflation has risen because of a 5.6% rise in energy prices and a 10.6% increase in gasoline, core inflation – a key figure that excludes volatile food and energy prices – rose 4.3% from a year ago and 0.3% since July.
CNBC
These numbers come after the Federal Reserve hiked interest rates to 5% in an attempt to cool the economy. At least one more rate increase could potentially occur in the coming months based on the new data.
Reuters
Fed chair Jerome Powell has said the economy still “has a long way to go” in its effort to get inflation to 2%.
ABC News

Sources Split

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The Spin

Establishment-critical narrative

The economy is not working for the working-class American consumer, and the Fed’s interest rate hikes — which slow wage growth and make mortgage rates explode — haven’t done enough to slow inflation. Hardworking Americans and small businesses are being hit hardest and can't see a way out under current policy.

ZeroHedge

Pro-establishment narrative

This report is overall positive news for the economy, even if the inflation was a little higher than hoped. Core inflation is slowing and the economy is trending up, so the Fed’s policy is working as intended.

KATU