The August CPI inflation report was largely flat on a monthly basis

0.1% Price increases are generally in line with expectations

The low inflation was almost entirely due to the sharp drop in oil prices.

Most other major components are experiencing price increases

The Fed is more concerned about core inflation.

rather than temporary fluctuations in energy costs and will take little comfort from the report.

Several core CPI units rose in August amid fears that any changes in energy costs would play a role.