Economists polled by Reuters were expecting the U.S. Consumer Price Index to be flat from July to August.
Instead, there was a whiff of deflation: The CPI fell 0.1% in August, the first decline in seven months.
The deflationary trend is reasserting itself some six years after the end of the Great Recession. According to the National Bureau of Economic Research, the recession officially ended in June 2009.
Here’s an excerpt from a September 16 CNBC article which mentions specific consumer items:
U.S. consumer prices unexpectedly fell in August as gasoline prices resumed their decline and a strong dollar curbed the cost of other goods, pointing to tame inflation ….
Sluggish wage gains and a strong dollar have contributed to keeping inflation below the Fed's 2 percent target. …
[In August], gasoline prices fell 4.1 percent, the biggest drop since January, after rising 0.9 percent in July. Food prices gained 0.2 percent as egg prices increased 7.7 percent.
Egg prices are now up 35.3 percent from a year ago, reflecting the impact of the avian flu that struck some parts of the country early in the year.
There were also increases in tobacco prices and apparel. However, airline fares fell 3.1 percent and used car prices declined for a fourth straight month. Household furnishings also fell as did the cost of recreation.
You can review the entire article, which includes a chart of monthly U.S. Consumer Price Index data, by following the link below: