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  • End of “Disinflation” Honeymoon: CPI Accelerates YoY. Core Services CPI Accelerates MoM. Durable Goods Prices Normalize at Nosebleed Levels.

End of “Disinflation” Honeymoon: CPI Accelerates YoY. Core Services CPI Accelerates MoM. Durable Goods Prices Normalize at Nosebleed Levels.

August 11, 2023

by Wolf Richter Wolf Street

Core services inflation at 6.1% year-over-year; Core CPI at 4.7%. Three factors make it rough for CPI the rest of the year.

Overall Consumer Price Index rose by 3.2% in July compared to a year ago, the first year-over-year acceleration since June 2022, marking the end of the period of “disinflation” when the year-over-year inflation rate cooled. There are three reasons that we already know (more in a moment) that will cause the year-over-year CPI rate to increase further in the second half of 2023 because the disinflation honeymoon (purple in the chart below) is now over.