While the Consumer-Price Index rose 8.3% in August and is down from the peak of 9.1% in June the Core Consumer-Price Index increased to 6.3% in August from 5.9% in June and July. The Core CPI excludes volatile goods like food and gasoline. This could mean things are actually getting worse economically and the higher prices we’re all experiencing are going to stick around longer than hoped or they may just stay permanently.

So-called core CPI, which excludes often volatile energy and food prices, increased 6.3% in August from a year earlier, up markedly from the 5.9% rate in both June and July—a signal that broad price pressures strengthened.

On a monthly basis, the core CPI rose 0.6% in August—double July’s pace. Investors and policy makers follow core inflation closely as a reflection of broad, underlying inflation and as a predictor of future inflation.

US Inflation Remained High in August – WSJ

This is what happens when the government hits us with the double whammy of COVID-19 shutdowns and printing trillions of dollars. Prices can’t come down because our money is worth less than it was before and the price of labor is cutting into operating expenses of every size business. Prices have to rise due to increased costs and prices can’t come down because a dollar is worth much less today than in 2019.

This is turning into a viscous cycle.