[Music] fation surely does not want to make the job the fed's job any easier for them it is Wednesday September the 11th and we received the August consumer price index that most people have been looking for to get an indication on whether or not the Federal Reserve would cut interest rates by 25 basis points or 50 basis points at their meeting next week and what this proved to us is that it's most likely going to be a 25 basis point Ray cut the reason being is while it came in relatively in line with expectations when we look at the core level that that level that's excluding out food and energy that actually was a little bit higher than what was expected not a lot it was up 3/10 of a percent after an expectation of 2/10 and also 210 the last month on a year-over-year basis it also came in line as expected at the core level we're growing 3.2% there are some people that are focusing on the headline number which is now um growing to and half% compared to 2.9% in the last month's reading however that's not what we're focused on and that's not what our pocketbooks are focused on we're focused on that um excluding the the volatile items so when you look into this and you look at some of the items that are still causing problems for consumers again services this continues to be an issue services are still growing about 4.8% on a year-over-year basis um they grew 3/10 of a percent the one area that the fed's going to look at that's that sticky inflation is the shelter so the owner's equivalent rent this turned back around um we were making some progress bouncing around 4% and 3% on a month over month basis it jumped up to 0.5% in August so on a year-over-year basis um owner's equivalent rent which is basically a housing proxy is growing 5.4% there have been a lot of rep about how we should have seen this start to decelerate at a much faster Pace by now and we just haven't seen that um so the FED will pay close attention to that um some of the other areas um Airline fairs jumped up again but used cars now are lower by 1% um Recreation um and then obviously um some of the fuel and commodities with that energy component now what does this mean um we'll get a couple more reports this week we'll get the PPI report tomorrow and then we'll get import export prices on Friday for us as we said it means the FED can go 25 basis points instead of 50 and they should go 25 basis points instead of 50 inflation is getting in the right direction but it's very stubborn getting there so the FED needs to be very careful and not completely forget about what we're seeing here in some of these inflation um data that's all we have today if you liked this please you know subscribe to us hit that alarm Bell um if you would like to see any of our historical podcast you can go to markets withth megan. FM thank you [Music]