Following fuel-driven jump in Producer Prices, consensus was for a concomitant jump MoM in Consumer prices this morning, after last month's decline as energy prices have rebounded (though we warned that amid all the interventionist-y chatter, nothing would surprise us less than 'cool' print to offset the PPI scare).
And analysts were right with headline CPI rising 0.4% MoM (exactly as expected) - biggest MoM since May - but prices rose 3.5% YoY (in line with expectations and flat to the prir month)...
Core Services accelerated...
...BUT Fuel prices dominated the rise in headline CPI...
Headline CPI rose 0.4% MoM in August, after rising 0.1% in July. Over the last 12 months, the all items index increased 3.4%.
- The index for energy increased 2.1 percent over the month: The index for gasoline rose 3.9% in August, accounting for over one third of the monthly all items increase.
- The shelter index rose 0.3 percent in August after rising 0.1 percent in July.
- The index for food increased 0.1 percent over the month,
