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Weekly economic review & outlook
Inflation warm again in August

SEP. 14, 2020

You Need to Know

Week in review

Slower, but still rapid, inflation for August

The consumer price index rose by at least 0.4 percent for a third consecutive month while core prices again posted an above-trend increase.

Tech stocks drive a market sell-off

After setting record highs in recent weeks, broad equity market averages have fallen sharply with a rise in volatility as uncertainties increase.

Week Ahead

Forecasts

Another strong month likely for retail sales

Aided by a strong number for motor vehicles, growth in retail sales should be solid once again as it continues its recovery.

Housing starts expected to edge a bit lower

Following the surge in the last few months coming out of the economic shutdown, housing starts in August are expected to take a small step down, mostly from the volatile multifamily sector.

The consumer price index (CPI) rose by 0.4 percent for August, the third consecutive month of an increase that strong or faster. Food and energy prices were up sharply, although the pace of energy price gains slowed considerably from June (which was up by 12.3 percent) and July (up by 5.6 percent). The 12-month trend growth rate in the CPI rose to 1.3 percent, the fastest pace since March.

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