U.S. CPI rose 0.1% in August, with the core rate increasing 0.3%
U.S. CPI rose 0.1% in August, with the core rate increasing 0.3%, a little above expectations. There were no revisions to July's 0.3% gains for both. On a 12-month basis, the headline index slowed to a 1.7% y/y pace versus 1.8% y/y and the core rate accelerated to 2.4% y/y versus 2.2% y/y. Energy prices weighed on the headline, dropping 1.9% versus the prior 1.3% rebound, with transportation costs sliding 0.6%. Services costs edged up 0.2% from 0.3% previously. Housing costs rose 0.1% from 0.3%. Food and beverage prices were unchanged. Apparel increased 0.2% from the prior 0.4% gain. Medical care climbed 0.7% from 0.5% previously. Education was flat, but personal computer prices rose another 1.2% after jumping 2.8% previously. Tobacco prices were up 0.5% from 1.0%. The data will be overshadowed by the ECB's actions.