Published: 2026-09-11T15:25:04.000Z
U.S. August Median CPI subdued at 2.1% annualized
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August’s 2.1% annualized increase in the Cleveland Fed’s Median CPI is quite subdued and suggests that the upside surprise in the core ex food and energy rate can be attributed to a few components.
Most significant was a 5.4% surge in telephone prices that added almost 0.1% to the 0.3% core CPI gain. Other sectors that were above trend were a corrective bounce in lodging away from home, air fares and autos. Elsewhere the CPI breakdown was acceptably subdued.
The yr/yr Median CPI slowed to 2.6% from 2.7%, reaching its slowest since August 2021. Yr/yr core CPI also slowed, to 2.4% from 2.5%. While we expect a tightening at Wednesday’s FOMC meeting, there will be some debate and perhaps even a few dovish dissents.