Though overall consumer prices rose just 0.1% in August, Tuesday’s Labor Department report was still bad news for consumers. The continuing decline in gas prices blunted the overall impact, and costs for food and housing continued to rise.
The report surprised analysts, who were expecting more good news following July’s encouraging numbers. It makes it more likely that the Federal Reserve will continue its aggressive interest rate hike strategy next week. The Dow was down 650 points within the first hour of trading Tuesday.
Each month, No Labels takes a look beyond the headline inflation number to see how costs are changing for the things that matter most to consumers — staples like milk, bread, and eggs, as well as gas and housing. Here’s this month’s Kitchen Table Index.
