August US CPI Report Shows Sticky Inflation at 2.9%

The Bureau of Labor Statistics reported that the Consumer Price Index increased 2.9% in August from year-ago levels compared with 2.7% in July. Year-over-year core CPI (which excludes volatile food and energy costs) rose 3.1%, matching the July rate of 3.1%.

The CPI rose 0.4% month over month in August after rising 0.2% in July. Core CPI also rose 0.3%, matching the July increase.

Economists had expected CPI to rise 0.3% on a monthly basis in August and 2.9% year over year, according to the consensus estimates from FactSet. Core CPI, which excludes volatile food and fuel prices, was also expected to come in at 0.3% on a monthly basis for August and 3.1% year over year.

August CPI Report Key Stats

• CPI rose 0.4% for the month after rising 0.2% in July.
• Core CPI rose 0.3% after rising by the same amount in July.
• CPI increased 2.9% year over year after increasing 2.7% the prior month.
• Core CPI rose 3.1% from year-ago levels after rising by the same amount in July.

Food prices increased 0.5% in August after holding steady in July. Grocery prices rose 0.6%, while restaurant prices increased 0.3%.

Energy prices were mixed after holding steady last month. Utility gas prices fell 1.6%, fuel oil prices decreased 0.3%, gasoline prices rose 1.9%, and electricity prices increased 0.2%.

Shelter prices rose 0.4% in August after rising 0.2% in July.