Investors are also cautious ahead of the Federal Reserve’s 2 day September policy meeting that begins today and will determine whether the U.S. central bank will raise interest rates for the first time since 2006.
Tomorrow Fed members at the Federal Reserve will make their interest rate decision and Fed Chair Janet Yellen will hold a press conference.
The Bureau of Labor Statistics reported this morning that the Consumer Price Index (CPI) decreased -0.1 percent in August when falling gas prices and a strengthening dollar pushed down inflation. That matches the -0.1 percent estimate from briefing.com.
Core CPI, minus energy and food, increased 0.1 percent in August, the same increase as in July, which also matches the estimate from briefing.com.
The 12 month change in the index for all items, minus food and energy, also remained the same, at 1.8 percent for the 12 months ending August.
During the last 12 months, the all items index rose 0.2 percent before seasonal adjustment
Falling energy and Gas Prices
The energy index fell 2.0 percent in August after rising in five of the past 6 months.
The gasoline index, which had risen 3 months in a row, fell 4.1 percent in August.
CPI is the most widely cited inflation indicator, although it’s not the preferred inflation gauge by the Federal Reserve which places more emphasis on personal consumption expenditures (PCE) when measuring whether inflation is moving closer to its 2 percent inflation target.
The July PCE price index, excluding food and energy, increased 1.2 percent from July 2014.