Economy

September 14, 2021

Inflation’s Cool Down ❄️

Inflation is cooling off according to the U.S’s inflation indicator, the consumer price index (CPI.) ❄️

The CPI rose 0.3% month-over-month in August, a slightly lower figure than economists expected. The figure was up 5.3% year-over-year, which is definitely higher than inflation numbers from prior years. However, inflation’s recent rise seems to be tapering off — an indication that the worst could be over. 

Energy and food accounted for most of last month’s rises, with energy costs up 2%. Gasoline prices rose 2.8%, which happened in-part as a result of disruptions to oil-producing activity in the Gulf. The EIA’s most recent report from Sept. 9 indicated that Hurricane Ida shut down “96% of the crude oil production and 94% of the natural gas production in the … Gulf.” The report also stated that “significant levels of refining … and production remain shut in”  as of now. 

If you take food and energy out of the equation (two of the more volatile categories), then America’s inflation indicator only jumped 0.1% for the month (compared to 0.3% estimated.) The Fed stands behind its former comments that inflation will fade after shortages and supply chain woes subside. 📉

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