US CPI Unexpectedly Rises 3.7% in August Thanks to Surge in Gasoline Prices

Inflation in the US rose another 0.6% month-over-month in August, resulting in an annual increase of 3.7%— above forecasts calling for a print of 3.6% and higher than July’s reading of 3.2%. Core CPI, which excludes volatile components such as food and energy, was up 4.3% over the past 12 months, less than last month’s 4.7% and in line with economists’ expectations.

According to the BLS, last month’s increase was predominantly due to a rise in the gasoline index, which was up 10.6% month-over-month. What’s proving to be another thorn in the Federal Reserve’s fight against inflation is the 40th consecutive increase in the shelter index, which jumped another 0.3% between July and August and is up 7.3% over the past 12 months.

Not to be left out, food prices rose by another 0.2% in August, contributing to an annual increase of 4.3%. Core CPI, meanwhile, is proving to be resilient to the Fed’s rate increases, as indices including rent, owners’ equivalent rent, motor vehicle
insurance, medical care, and personal care all increased. The indexes for lodging away from home, used cars and trucks, and recreation were among those that decreased over the month, as Americans’ wallets are left with little choice but to spend less on non-necessities.

Information for this story was found via the BLS. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Share
Tweet
Share