Economic Watch: Consumer Prices Fall, Homebuilders Most Optimistic Since 2005
The threat of inflation to the U.S. economy appears to be muted, with a report issued Wednesday showing consumer prices in August fell for the first time in 16 months.


The threat of inflation to the U.S. economy appears to be muted, with a report issued Wednesday showing consumer prices in August fell for the first time in 16 months.
The U.S. Labor Department reported the Consumer Price Index declined 0.2% from July, when it posted a 0.1% gain. The August numbers are up 1.7% compared to a year ago. This compares to a 12-month increase in July of 2%.
Excluding volatile food and energy prices, consumer prices were unchanged for August, the first time this has happened since August 2010. Over the past year these “core prices” are up 1.7%, compared to 1.9% in July.
Increased prices for food and shelter were offset by declines energy prices, especially gasoline.
The news was released ahead of an expected Wednesday afternoon announcement by the U.S. Federal Reserve about how quickly it will or won’t move when it comes to pushing near-zero interest rates higher.
Lindsey Piegza, chief economist at the investment firm Sterne Agee, called the August consumer price report “extremely benign," on the heels of a soft producer price report released the day before.
"The hawkish argument that the Fed need raise rates sooner than later to stay ahead of inflation has clearly lost at least some credibility, with headline inflation reversing course for the second consecutive month,” she said. “Although interestingly enough, led by a decline in energy costs, price reprieve at the pump will help maintain a floor in consumer spending which could in the longer run support the hawkish argument that the economy is on stronger footing. Still, for now, from the doves' point of view, the Fed can and needs to remain focused on the U.S. labor market.”
Meantime, a separate report shows builder confidence in the market for newly built, single-family homes rose for a fourth consecutive month in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
This latest reading brings the index to its highest level since November of 2005.
“Since early summer, builders in many markets across the nation have been reporting that buyer interest and traffic have picked up, which is a positive sign that the housing market is moving in the right direction,” said NAHB Chairman Kevin Kelly.
Despite the upbeat report, which also shows builder confidence increased in every region of the country, the group did offer some words of caution.
“While a firming job market is helping to unleash pent-up demand for new homes and contributing to a gradual, upward trend in builder confidence, we are still not seeing much activity from first-time home buyers,” said NAHB Chief Economist David Crowe. “Other factors impeding the pace of the housing recovery include persistently tight credit conditions for consumers and rising costs for materials, lots and labor.”
More Fleet Management

How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery
The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.
Read More →
Think Your Trucking Fleet Isn't Using Much AI? Think Again
Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.
Read More →
ArcBest Consolidates Brands, Cuts Workforce
The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.
Read More →
Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession
ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.
Read More →
Michelin Adds AI Assistant to MyConnectedFleet Platform
Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.
Read More →
LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools
New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.
Read More →
