Core Inflation Is Still LowIn contrast to July, when gasoline prices remained level and top-line inflation was low, gasoline prices in August jumped by 8.8%, driving most of the 0.3% increase in the top-line PCE deflator. By contrast, food prices remained relatively quiescent, increasing at only 0.1% in August. Overall, this was a fairly ordinary month for top-line inflation—though gasoline prices jumped slightly, it takes many consecutive months of such jumps in order for an energy price bubble to be a reality. This is unlikely given trendless volatility in oil prices....
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