The U.S. August consumer price index report was as expected, showing overall CPI down 0.1% and core up 0.2% as the effects of lower energy prices worked into the data.

The last time the overall CPI printed a drop was October 2006. However, over-the-year CPI is running 5.4% higher and over-the-year core is up 2.5% — the highest since February 2007 — both a bit elevated from prior readings as prior price increases work through.

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