The Wall Street Journal says inflation still lives:

Our friends on Wall Street and in Washington keep saying that inflation is vanquished as they hope–plead–for lower interest rates. Yet the economic data aren’t bearing out their optimism, as the Labor Department’s consumer price report for August revealed on Thursday.

Consumer prices climbed 0.4% in August and 2.9% over the past year, both the most since January. Price increases last month were broad-based, hitting food consumed at home (0.6%), alcohol (0.6%), children’s shoes (1.5%), clothing (0.5%), new cars (0.3%), used cars (1.0%), housing (0.4%), hotels (2.6%), vehicle repair (5.0%), air fares (5.9%) and more.

The index for so-called core prices (less volatile food and energy) wasn’t more reassuring. Those prices rose 0.3% in the

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