America still has an inflation problem

hoped that America’s latest inflation report would bring good news. Headline annual inflation has been falling from the in June, and economists expected August would bring a second month of modest increases—by recent standards—in core prices, which exclude food and energy. Those hopes were dashed. The release on September 13th showed another drop in the headline annual rate, to 8.3%. But core prices rose 0.6%, twice the 0.3% forecast. The news hit markets: the & 500 index dropped by 4.4% as investors worried that the Federal Reserve would have to raise rates harder and faster to cool the economy.