Price perception problems

Daily update

The August US consumer price inflation data was not surprising. Durable goods prices continue to rise—after 29 months of deflation, their inflation rate has been positive and rising since May. These are less frequent purchases and so while the price moves do erode spending power, the consumer tends to be less aware of them.
Rising food prices are more visible—"food at home” prices had the biggest monthly increase in almost three years. Beef, bananas, and coffee stand out. These are due to specific factors (import prices, harvests), and do not signal a general imbalance in the US economy. Today’s Michigan consumer sentiment data is of limited value in itself, but if Republicans report higher inflation expectations that may fuel future political concerns.
The UK offers monthly GDP data for July. The UK is the fastest growing G7 economy year-to-date, so knowing the growth momentum at the start of the second half would be interesting. Whether monthly GDP reliably signals that momentum is a different question.
French and Spanish final August consumer price inflation data are due. Do we care? Reader, we do not. Several ECB speakers are scheduled. Do we care? With policy described as being in a “good place,” not really.