US inflation came in at +0.2 as expected in August.
Source: BLS
Over the year, headline inflation was +2.5 per cent, way down from the peak of +9.1 per cent.
The 'all items less food and energy' reading fell to +3.2 per cent (the 6-month annualised core inflation figures were a much healthier +2.7 per cent).
The 3-month annualised figure was +2.1 per cent, suggesting that in real time price pressures are probably being broken.
Source: BLS
This wasn't a bad result...essentially in line with expectations.
There are arguably some worrying signs in the economy, but with services inflation still looking potentially a bit sticky, the Fed will probably go with a 25 basis point cut in September, and await further information.
I think.
