Rising gasoline costs were the main culprit of August’s advance, ticking 10.6% higher last month and accounting for over half of the increase.
US inflation rose a surprisingly stiff 3.7% in August as prices at the gas pump surged, adding pressure on the Federal Reserve as it weighs additional rate hikes this fall to tamp down prices.
The Consumer Price Index — a closely-watched measure of inflation that tracks changes in the costs of everyday goods and services — rose 0.6% in August versus a month earlier, according to data by the Bureau of Labor Statistics released Wednesday.
August’s acceleration is a 3.7% increase from 2022 — slightly ahead of the 3.6% increase that economists had expected, according to FactSet.
The latest number represents a stark slowdown from last summer when inflation hit a four-decade peak at 9.1%. Still, it remains well above the Fed’s 2% goal and marks an acceleration from the previous two months. In June, inflation bottomed out at 3%, and rose to 3.2% in July,
As Wall Street expected, rising gasoline costs were the main culprit of August’s advance, ticking 10.6% higher last month and accounting for over half of the increase, the data showed.
As of Wednesday, the national average for one gallon of gas is $3.85, according to AAA figures — two cents less than a month ago and four cents less than a year ago as oil prices hit a 10-month high.
