The Consumer Price Index had its first drop in nearly two years. The CPI numbers came in this morning down .1% for the month, better than expectations. On a year over year basis, inflation is running over 5.4%.
Here is a breakdown of the inflation benchmark to show you where costs are rising and falling most. For Aug, energy prices are down but still up a whopping 27% over one year ago. As energy prices continue to drop we should see should see even better numbers next month.
The better than expected economic news is not looking like it will help the markets this morning as futures continue to sink. Focus continues to be on AIG's viability and Goldman Sachs' earnings. Eyes will be on the Fed later today. As inflation pressure eases, many are looking for the Fed to cut rates this afternoon.
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