The Consumer Price Index (CPI) rose 0.6% in August, after increasing 0.2% in July. This is the highest monthly increase since March 2022. The year-over-year CPI increase was 3.7%, the highest since November 2018.
The largest contributor to the monthly increase was gasoline, which rose 5.6%. Shelter costs also increased, rising for the 40th consecutive month. Food prices increased 0.2%, with food at home prices rising 0.2% and food away from home prices rising 0.3%.
Core inflation, which excludes food and energy prices, rose 0.3% in August, following a 0.2% increase in July. Core inflation has been trending lower in recent months, but it is still above the Federal Reserve's target of 2%.
The following are some of the key takeaways from the August CPI report:
Inflation remains elevated, but it is showing some signs of moderation.
Gasoline prices are a major driver of inflation.
Shelter costs continue to rise.
Food prices are rising at a moderate pace.
Core inflation is still above the Federal Reserve's target.
Consumers should continue to be mindful of their spending as inflation remains a challenge.
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