Despite lower gas prices, consumer prices were up in August...
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According to data released by the Labor Department on Tuesday, the consumer price index rose by 0.1% in August.
Previously in July, the CPI had stayed flat.
“Today’s CPI reading is a stark reminder of the long road we have until inflation is back down to earth,” said Mike Loewengart, head of model portfolio construction for Morgan Stanley’s Global Investment Office. “Wishful expectations that we are on a downward trajectory and the Fed will lay off the gas may have been a bit premature.”
And as a result, the S&P 500 suffered its worst day since July of 2020, according to Bloomberg.
While a rise in inflation is a sign that a long road is still ahead for the economy, the annual inflation rate fell to 8.3% for the month of August. This is a slight decrease from July's 8.5% annual rate.
Read the full report on CNBC.