Gasoline plunged, durable goods fell. Inflation still hot in housing, insurance, healthcare, transportation (incl. auto services). Food inflation simmers.
Plunging gasoline prices and dropping prices in a few other categories hold down overall CPI. A mess for the Bank of Canada.
Energy plunges, durable goods drop, food ticks up from sky-high levels, but meat re-surges, services are hot, rents accelerate, auto insurance spikes.
The BLS now tweaked the methodology after letting it go haywire for two years. This fiasco should be a career-ender for the top of the BLS.
Hitting all his hot buttons today with the month-to-month PCE price index.
Prices eased in other categories.
This was the last of 12 health insurance adjustments that pushed down core CPI and core services CPI; it will swing the other way next month.
Cost-of-Living Adjustment for 2024 plunges from 2023 mega-COLA, which outran inflation by a wide margin. This one will fall behind inflation.
Or why auto insurance has gotten so ridiculously expensive — after used vehicles have gotten so ridiculously expensive.
Fed’s favored inflation measures get a big upward revision going back across this bout of inflation.