US Consumer Price Growth Slows As Used-Car Prices Plunge
Following the unexpected plunge in producer prices, analysts expected consumer prices to rebound in September, but it didn’t as CPI was unchanged MoM and up 1.7% YoY (less than expected).
Goods price inflation slowed as services prices rose…
Under the hood, used car prices plunged.
The index for used cars and trucks declined in September, falling 1.6 percent. The apparel index fell 0.4 percent in September after rising in each of the prior 3 months. Also declining in September were the indexes for new vehicles, for communication, for alcoholic beverages, and for personal care. The recreation index was unchanged in September after rising in August.
This is the third biggest drop in used car prices since the financial crisis…
But shelter index continued to rise, increasing 0.3 percent in September following a 0.2-percent increase in August. The index for rent rose 0.4 percent and the index for owners’ equivalent rent increased 0.3 percent. The index for lodging away from home increased 2.1 percent in September after falling 2.1 percent in August.
Once again the promised surge in prices due to Trump’s tariffs remain entirely absent from the headline index.
Thu, 10/10/2019 – 08:35