The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after being unchanged in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.3 percent before seasonal adjustment. Increases in the shelter, food, and medical care indexes were the largest of many contributors to the broad-based monthly all items increase. These increases were mostly offset by a 10.6-percent decline in the gasoline index. The food index continued to rise, increasing 0.8 percent over the month as the food at home index rose ... (full story)

Expectations for a 0.1% MoM drop in CPI has set the squeeze-algos on fire in recent days as the small drop signals 'peak inflation' and goldilocks and a unicorn-filled Fed will step back and declare victory (with a lag). Short-term interest-rates - however - have not been buying that dovish story, so how the market reacts to today's print will be fascinating given the technical background of extreme negative delta and positioning, and now momentum. The market was pricing in a 90% chance of a 75bps hike by The Fed next week ahead of the CPI print. Headline CPI came hotter than expected rising 0.1% MoM vs expectations ... (full story)