That’s a remarkable percentage and calculation for the Federal Reserve to consider when making a rate cut decision.

The Consumer Price Index (CPI) report showed overall inflation rose by 0.2% in August, aligning with expectations.

Housing, airfare, and car insurance saw increases, with airfare alone jumping 3.6% last month. While inflation has decreased to 2.5%, 89% of August’s figure was driven by just two key components. Notably, shelter or rent contributes 45.7% to the CPI.

On a year-over-year basis, auto insurance costs fell from 18.6% to 16.5%, making me curious about the profit margins of auto and home insurance companies.

Overall, this was a positive report and provides the Fed with more justification to begin cutting rates.