MARKET SPIRAL: Dow plunges nearly 900 points as inflation skyrockets in August
Shares of Rent the Runway plunged more than 22% before the bell on Tuesday, as more Americans paused their subscription to the clothing rental firm as they feel the pinch of red-hot inflation.
The company said while it saw subscriber numbers bounce back in August and September, it was still difficult to predict how consumers would behave given an uncertain macro backdrop.The Consumer Price Index for All Urban Consumers rose 0.1% in August on a seasonally adjusted basis after being unchanged in July,Over the last 12 months, the all items index increased 8.3% before seasonal adjustment, a smaller figure than the 8.5% increase for the period ending July.
The survey also marks a return to doom and gloom after August's iteration found investors were bearish but no longer"apocalyptically" so. Analysts and traders say wholesale gasoline prices are expected to keep falling in coming months as U.S. refiners overproduce fuel to try to rebuild low stocks of diesel and heating oil.
Economists expect the gauge, which measures a basket of goods, including gasoline, health care, groceries and rent, to show that prices surged 8.0% in August from the previous year — down from the 8.5% reading in July and a marked decline from the 40-year high of 9.1% notched in June.
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