Inflation was weakening last year in the US, but it was still holding well, compared to Europe. Although, it fell into contraction from March to May, contracting by 1.3% during those months, but it started reversing in June, posting a 0.6% increase during June and July, while today’s report showed another decent increase for August. But, earnings cooled off in August, although they still remain high. Below is the inflation and earnings report for August:

Highlights of the August 2020 US consumer price index report

• August CPI YoY +1.3% vs +1.2% expected
• July CPI YoY was +1.0%
• Core CPI YoY, excluding food and energy +1.7% vs +1.6% expected
• CPI +0.4% MoM vs +0.3% expected
• Core CPI MoM at +0.4% vs +0.2% expected