Econbrowser: Everyday Price Index Suggests Faster Month-on-Month Inflation in August CPI
Author: Econbrowser·
Key Takeaways
- •The Cleveland Fed nowcast suggests August CPI inflation is accelerating on a month-over-month basis.
- •The article notes that monthly inflation movements can differ from year-over-year inflation readings.
- •The chart compares CPI with CPI for wage earners and clerical workers, chained CPI, and the AIER Everyday Price Index.
- •The 2025M08 CPI observation comes from the Cleveland Fed nowcast dated 8/12.
- •The EPI observation is a forecast generated from a first-differences regression using CPI and GASREGW.
Including Everyday Price Index™. The nowcast suggests accelerating month-on-month inflation in the August CPI, a reminder that the monthly pace can differ from year-over-year readings and is often what short-term nowcasts aim to capture.
Figure 1 shows CPI (blue), CPI for wage earners and clerical workers (purple), chained CPI (green), and the AIER Everyday Price Index (light red), all in logs with 2025M01 = 0. The 2025M08 CPI observation is the Cleveland Fed nowcast from 8/12, while the EPI observation is a forecast from a first-differences regression using CPI and GASREGW. Source: BLS, AIER, Cleveland Fed, and the author's calculations.
