Inflation Is Slowing Rather Than Speeding UpOnce again, the CPI numbers for August indicate that the economy is not in danger of inflation and if anything, is edging closer to deflation. Although top-line inflation jumped up slightly higher than expected in August, this was almost entirely due to an upward blip in the price of gasoline for the month. Food prices also edged up higher, although at a much slower rate. Indeed, if energy is removed from the picture, consumer prices are increasing at the same very slow rate as in the past three or four months and may even be due for a decrease in the coming months, as prices for nonfood, nonenergy consumer goods edged down for the first time since December. Although top-line inflation may look relatively volatile, almost all of this volatility is driven by the effect of oil prices on energy costs....
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