US CPI/PPI - 2024-09-10

Date: 
Wednesday, September 11, 2024
Summary: 

Relax everybody. The miss in core CPI was just one thing: shelter. In fact, 19 bp of the whole 20 bp of headline CPI in August was OER, rent and lodging. It's stupid for the Fed to let that one part of one month of inflation make the call -- but when it's a close call, little things do make a difference: this locks in only a 25 bp cut for the September FOMC. And that's just fine.