Energy prices, specifically gasoline, were the biggest culprit of August’s hotter than expected inflation.
The energy index rose 5.6% in August from the prior month, a sharp re-acceleration from a 0.1% increase in July, as oil prices rallied and prices at the pump hit 2023 highs.
“The math is simple — declining supply and rising demand equal higher prices,” Adam Turnquist, chief technical strategist for LPL Financial, recently wrote in a note to investors.