Economy sees slower inflation rate in August; gold sees pressure on data release

New York (Sept 11)  The Consumer Price Index for All Urban Consumers (CPI) increased 0.4 percent in August, after climbing 0.6 percent in July, according to data released Friday by the Bureau of Labor Statistics (BLS).

Spot gold was down $3.20 as of 8:30 am EST on Friday.

“Over the last 12 months, the all items index increased 1.3 percent before seasonal adjustment,” the BLS report stated.

The CPI data came in stronger than expected as the consensus expectation for year-over-year inflation rate was only 1%.

On a 12-month rolling basis, the food index was up 4.1 percent, while the energy index remained negative at -9.0 percent. All items less food and energy, otherwise known as core CPI, increased 1.7 percent.

On a monthly basis, the energy index rose 0.9 percent in August as the gasoline index rose 2.0 percent.

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