Consumer prices rose again in August, albeit at a slower pace than earlier in the summer.
The Consumer Price Index rose 5.3 percent compared with a year ago, the Department of Labor said Tuesday. On a monthly basis, the CPI rose 0.3 percent.
That continues the trend seen since January as the U.S. economy has been wracked by soaring prices and ongoing supply disruptions. But the resurgence of coronavirus infections has slowed parts of the economy, relieving s0me of the inflationary pressure.
Economists had forecast a 5.3 percent annual gain and 0.4 percent compared with the prior month.
The major stock indexes turned sharply higher on the news, presumably because the slightly lower-than-expected monthly inflation number is seen as relieving some of the pressure on the Federal Reserve to begin tapering its bond purchases at its monetary policy this month. Many economists now expect the Fed will hold