US Inflation (CPI) - Not Good Enough

Written by Philip Rich, Chief Investment Officer,  September 13, 2022.

The “all items” CPI index came in at 8.3% (YOY) for August, down from a high of 9.1% in June. However, the decline did not meet the expectations of many observers, and “core” CPI (less food & energy) rose to 6.3% from 5.9% in July. Although energy costs, including gasoline, have come down, food, housing, transportation, and medical services remain stubbornly high. The report may set the stage for another strong rate increase from the Federal Reserve later this month. The initial market reaction is negative.

US Inflation - Still Too High

  • 8.3% YOY for “all items” is a decline from 9.1% in June
  • However, “core” inflation went up to 6.3%
  • Food, housing, transportation, and medical care are keeping inflation high
  • Lower energy costs helped
  • Markets reacted negatively to inflation news
  • Report could set stage for another significant interest rate hike from the Fed

Source: U.S. Bureau of Labor Statistics,


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Nora Bagby

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Ben Johnson, CFA

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Lance Hopegill, CFP

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Adam Martin, CFA

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Philip Rich

Chief Investment Officer

This information is for informational purposes only and does not constitute investment advice.


  • GDP – Bureau of Economic Analysis
                            Employment & Inflation – Bureau of Labor Statistics
                            Interest Rates – Federal Reserve
                            P/E S&P 500 –
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