AUGUST 11, 2023 – The August report came in at 3.3%, just below my forecast of 3.4%-3.5%. The 3-month annualized inflation rate is 3.1%. The 6-month annualized inflation rate is 4.4%. These figures bracket the annualized rate (3.3%) and thus indicate the annual CPI should be range bound for awhile.
Based on the data, my prediction for next month’s figure is 3.5%-3.6%. I like the data and am confident the next reading will be in that range or a tick lower like this month.
Through the October report, the annual CPI figure should be about as boring as a Miami weather forecast – 88 degrees/77 degrees, 88/77, 87/77, 88/76…I expect annual CPI to trend around 3.5% (plus or minus 0.1%-0.2%) through the October reading.
As an aside, the market is telling the Federal Reserve not to raise the Fed Fund Rate at its September meeting.
Til next month’s report.
Shalom,
The Mann