1. August CPI Disinflation Summary
Data released by the Bureau of Labor Statistics (BLS) confirmed that the headline Consumer Price Index (CPI) increased by 0.2% month-over-month in August 2026, matching economist projections. Over the last 12 months, the headline index rose 2.5% before seasonal adjustment, marking a deceleration from the 2.9% pace recorded earlier in the summer.
The index for Core CPI (all items less food and energy) rose 0.28% on the month, bringing the annualized core inflation rate to 3.1%. Sustained disinflation across durable goods and used vehicles balanced out persistent shelter costs, which rose 0.4% in August.
2. Consumer Price Index Breakdown Table (August 2026)
| Expenditure Category | Monthly Delta (MoM) | Annual Delta (YoY) | Inflationary Dynamic |
|---|---|---|---|
| All Items (Headline CPI) | +0.2% | 2.5% | 3-Year Low Pace |
| Core CPI (Ex-Food & Energy) | +0.3% | 3.1% | Controlled service-sector moderation |
| Energy Commodities & Gasoline | -0.8% | -4.0% | Downside pressure on transport costs |
| Shelter & Primary Rent | +0.4% | 5.0% | Lagged housing lease renewals |
3. Sovereign Debt Reaction & FOMC Policy Outlook
Following the print, market participants solidified projections for a 25 basis point rate reduction at the upcoming Federal Open Market Committee (FOMC) meeting on September 16–17:
- 2-Year U.S. Treasury Note: Yields eased to 3.64% (-4 bps), reflecting firm conviction in an orderly rate-cutting trajectory.
- 10-Year U.S. Treasury Note: Settled at 3.98% (-3 bps), dipping below the 4.00% benchmark handle for the first time in several months.
- Equity Markets: The S&P 500 and Nasdaq Composite advanced 0.55% and 0.82% respectively, led by growth equities and rate-sensitive real estate sectors.