U.S. consumer prices rose 0.4% in August, with gasoline driving much of the increase.
Why it matters: The report reinforces the case for the Federal Reserve to keep rates steady at its September meeting. It also matters for borrowing costs, mortgage pricing and market expectations for how quickly inflation will cool.
- The Bureau of Labor Statistics said August CPI rose 0.4% month over month and 3.4% year over year.
- Core CPI increased 0.3% from July and 2.4% from a year earlier.
- Reuters reported gasoline prices rebounded after earlier declines and accounted for a substantial share of the monthly increase.
- AP said the CPI report was the final inflation reading before the Fed's September policy meeting.
The Bureau of Labor Statistics said August consumer prices rose 0.4% from July and 3.4% from a year earlier, while core CPI increased 0.3% month over month and 2.4% year over year. The official report showed inflation still running above the Federal Reserve's 2% target.
Reuters reported that gasoline prices rebounded after earlier declines and made up a substantial share of the monthly increase. Its coverage said the reading was likely to keep attention on the Fed's rate decision later in September.
AP reported that wholesale inflation rose 5.4% in August from a year earlier. Its report said the CPI release was the final inflation figure before the Fed decides on rates.
By the numbers
- 0.4% - Monthly rise in August CPI
- 3.4% - Year-over-year increase in August CPI
- 2.4% - Year-over-year increase in core CPI
Yes, but: The CPI report does not guarantee a Fed move on its own; policymakers will still weigh the broader run of inflation and labor-market data.
What's next: The Federal Reserve's September policy meeting is the next major decision point.