Sunday Morning Coffee with CFG

This week’s edition includes a look at August inflation numbers.

Fuel Up! 🚀

Inflation Dominates The Headlines 

Major inflationary reports dropped this week, as August’s Consumer Price Index (CPI) and Producer Price Index (PPI) were released.

• CPI came in worse than expected, rising 0.1% from July to August and 8.3% from August 2021. Analysts had anticipated a decrease of 0.1% from July to August.
• Inflation for consumer core prices, which excludes food and energy, rose 0.6% month-over-month, more than the expected 0.3%.
• Better news here – PPI dropped for the second straight month, this time by 0.1% from July to August.
• Producer core goods prices rose 0.2% as global supply chain issues have begun to sort themselves out.

All of this will be part of the conversation at next week’s FOMC meeting, at which Jerome Powell and the rest of the Fed are expected to substantially raise rates once again.

Kids these days are following CPI reports like the scores of their favorite sports teams.

That’s the tricky part about inflation and expectations in economics – perception is reality.

Last month, everyone seemed to be taking a collective sigh of relief, because inflation started slowing.

However, this month’s report showed a slight uptick, and some folks aren’t as convinced that we’re through the thick of it yet.

The Fed is looking to show everyone that it means business and is working to keep people from thinking that 8% inflation is any bit normal.

Bottle Service 

You’ve seen some crazy home listings, but how about this AirBnB listing from India for the world’s largest bottle?

The bottle-home comes fully equipped with three bedrooms, updated finishes and even an aquarium. The only thing it’s missing is a slide from the cap down to the ground floor.

1. Mortgage Credit Availability Decreased In August
2. Early-Stage Delinquencies Edge Up In June
3. Special Housing Risk Report Spotlights County-Level Housing Markets
4. Are Mega-Investors Behind The Record Price Appreciation?
5. 78% Of Americans Predict A Housing Market Crash, 75% Plan To Buy

On one of our tougher puzzles, four solvers finished in less than 2 minutes, and our average solve time was over 5 minutes. Mark Goldstein’s 42 seconds was the best time, followed by John F, Manny Rivera and Bret Thompson.

This week’s puzzle isn’t as tough, but still has some teeth. We give it a rating of 3 Rockets out of 5.

Click here to solve!