Inflation is on the rise again, but it may not be as bad for your wallet as it sounds.
Here's what's happening: Driven by surging energy prices, the closely watched year-over-year inflation rate climbed from 3.2% to 3.7% in August, according to the Labor Bureau's latest consumer index report.
That's still well above the Federal Reserve's target rate of 2%, so it remains a concern.
However, the year-over-year rate should be taken with a grain of salt, as it no longer reflects the dramatic drop from peak prices in summer 2022.
"The year-over-year numbers are pretty meaningless at this point," says Daniel Altman, chief economist at Instawork, an online staffing platform.
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That's, Daniel Altman
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