Weekly Talking Points for Financial Advisors (9/15/23)

Read the highlights of this week's commentary from Helios:

• August’s Consumer Price Index recorded its largest month-over-month increase this year, up 0.6% from last month and 3.7% from last year. Rising energy prices, including a 10.6% increase in gasoline prices, were the largest contributor.
• Core inflation, which excludes food and energy prices, rose 0.3% last month, marking a year-over-year rise of 4.3%. While this is up from 0.2% month-over-month, it reflects a slight decrease from the 4.7% year-over-year figure.
• Retail sales grew by 0.6% in August; however, real retail sales decreased by 0.1%, indicating a slight decline in consumer spending.
• A notable positive development emerged from the latest consumer sentiment report, which reflected a decline in inflation expectations to their lowest level since March 2021.
• Despite an expected pause this week, the hotter-than-expected August inflation data may prompt the Federal Reserve to raise interest rates again. Economists surveyed by Bloomberg News anticipate one additional interest-rate hike this year, followed by an extended period of elevated rates next year.