Consumer Prices Accelerated in August

The Consumer Price Index grew 0.4% in August on a seasonally adjusted basis, according to U.S. Bureau of Labor Statistics. This followed a 0.1% July increase. Much of August’s acceleration can be attributed to higher gasoline prices due to Hurricane Harvey. Over the last 12 months, the all-items index rose 1.9%.

Prices for all items less food and energy, the “core CPI,” grew 0.2% in August, ticking upwards after four consecutive 0.1% monthly increases. The index rose 1.7% for the 12 months ending in August.

The food index increased 0.1%. Prices for food at home declined 0.2%, while food away from home grew 0.3%. Over the past 12 months, food prices are up 1.1%.

The energy index rebounded 2.8% in August after three consecutive monthly declines. August’s energy index increase was driven by a 6.3% increase in gasoline prices. The energy index rose 6.4% in the last twelve months.

Read the BLS release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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