Echoing yesterday's unexpected PPI drop, Consumer Price growth slowed dramatically in August, missing expectations by the most since May 2017 (following the first monthly drop in PPI since Jan 2017) sparking a drop in the dollar and bond yields.
CPI slowed to 2.7% YoY versus expectations of a 2.8% rise:
Core CPI seemed to hit the ceiling once again and slump:
Once again all US inflation is contained in services, with core goods on the cusp of deflation:
The moderation in the core CPI reflected a 1.6% drop in volatile apparel prices.