Inflation rose in August and remained well above the Federal Reserve’s target rate as central bank policymakers weigh potential interest rate cuts at their meeting next week.
The Bureau of Labor Statistics on Thursday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.4% in August compared with last month, while it rose to 2.9% on a year-over-year basis.
The monthly figure was hotter than the estimate of economists polled by LSEG, while the year-over-year figure was in line with expectations.
So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% from the prior month and 3.1% from a year ago. Both figures were in line with economists’ expectations.
High inflation has created severe financial pressures in recent years for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities and have less flexibility to save money.
Food prices rose 0.5% in August, as the food at home index jumped 0.6% and the food away from index increased 0.3%. Over the last year, the overall food index is up 3.2%, with food at home up 2.7% and food away from home at 3.9%.
Egg prices were flat in August after seeing price declines the prior three months, after prices rose rapidly last year due to an avian flu outbreak. The index for meats, poultry and fish rose 1.1% on a monthly basis and is up 5.4% from a year ago. Dairy prices rose 0.1% in August and are 1.3% higher than last year. The fruits and vegetables index rose 1.2% in August and is 1.9% higher than last year.
Housing prices rose 0.4% in August and are 3.6% higher than a year ago. The shelter index was the main driver of the increase in the all-items index.
This is a developing story. Please check back for updates.
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