Signs Point to Mounting Pressure in Services Inflation

Core Insights - Inflation in services remains firm but shows signs of potential pressure building, raising concerns due to the persistence of services inflation during previous price growth spikes [1][2]. Inflation Data - Services inflation, excluding energy, increased by 0.3% month over month in August, a slight decrease from the 0.4% gain in July [2]. - Supercore services, which exclude housing, also rose by 0.3% in August, down from a 0.5% increase in July [2]. - A decline of 0.1% in medical services in August contributed to the overall decrease in services inflation [2].