Overview
- The U.S. consumer price index rose 0.4% in August and 3.4% from a year earlier, according to the Bureau of Labor Statistics report released Friday.
- Energy was the dominant factor as the energy index climbed 2.1% and gasoline jumped 3.9% for the month, with gasoline 27.4% more expensive than a year earlier and responsible for over one-third of the monthly CPI gain.
- Core inflation, which excludes food and energy, remained more contained at a 0.3% monthly rise and 2.4% year-over-year, signaling that underlying price pressures are moderate.
- Housing costs accelerated to a 0.3% monthly increase in August, a development that could sustain inflation if it continues.
- Markets and policymakers view this CPI as the last major inflation input before the Fed’s imminent rate decision, and officials will assess whether the energy-driven spike is short-lived or likely to feed broader price increases.