Inflation continued to moderate in August as the Consumer Price Index (CPI) for the month came in line with economist expectations. Rising shelter costs and housing prices are major contributors to sticky inflation prints as prospective homebuyers try to find relief in the US home market, the CPI shelter index seeing gains of 0.5% month-over-month.

The Market Domination team welcomes Interactive Brokers senior economist José Torres to talk about this morning's inflation print, how price trends are becoming apparent in home prices and the autos sector, and consumer spending patterns within the services industry.

"The consumer these days... the propensity to save is particularly low. They're not out there saving to buy homes, they're not saving to buy automobiles. So what they're doing is they're spending a lot on services," Torres tellsJulie Hyman and Josh Lipton. "Our economy is 70% services. When you look at the labor market, sure, it's been cooling. Companies aren't hiring that much, but they're also not firing either, right? So that means that the consumer is going to have a firm underpinning beneath them so that they can continue spending."

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This post was written by Luke Carberry Mogan.