• Financial Survival Network
  • Posts
  • The Acceleration of Inflation in the Second Half Has Begun, “Disinflation” Honeymoon Terminated

The Acceleration of Inflation in the Second Half Has Begun, “Disinflation” Honeymoon Terminated

September 14, 2023

by Wolf Richter Wolf Street

Month-to-month CPI spikes, core CPI and core services CPI accelerate, despite ongoing massive health insurance adjustment.

The Consumer Price Index (CPI) jumped by 0.63% in August from July, the biggest month-to-month increase since June 2022. Annualized, this amounts to a red-hot 7.8%.

This jump comes despite the still ongoing ridiculous monthly adjustment to the health insurance CPI that caused it to collapse by 33.6% year-over-year. The September CPI, to be released in October, will be the last month with that adjustment; with the October CPI, to be released in November, it will flip, which will add upward momentum to the CPI readings.