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INTRADAY ALERT: August CPI "hot" but details better. Tape bombs ahead, so investors now likely wary until FOMC rate decision 9/20

THIS INTRADAY ALERT IS ONLY BEING SENT TO CLIENTS OF FS INSIGHT

August CPI came in "hot" as Core CPI came in at +0.30% versus Street +0.20% and above our +0.16% to +0.18% estimate. The details, however, are better than the surface level readings.

The details for August CPI are actually better. The +0.10% MoM is entirely due to 2 categories:- Motor Vehicle insurance surged +2.4% (29% annualized) adding +0.08% to Core- Airline fares exploded +4.89% (59% annualized) adding +0.03% to Core- combined, ...

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