Data from the U.S. Bureau of Labor Statistics showed that consumer prices rose 2.5% in August from a year earlier, up from 2.9% in July. It was the fifth consecutive annual decline and the smallest such increase since February 2021. From July to August, prices rose just 0.2%.
Core prices, which exclude volatile food and energy costs, rose 3.2% in August from a year earlier, the same as in July. On a monthly basis, core prices rose 0.3% last month, a slight rebound from July’s 0.2% increase.
U.S. inflation peaked at 9.1% in mid-2022, the highest rate in four decades, driven by rising prices for food, gasoline, rent and other necessities.
A key factor contributing to the fall in headline inflation in August was the third drop in gasoline prices in the past four months.
#USEconomicData | US August core inflation rate at 0.3% (MoM) vs. 0.3% estimate photo.twitter.com/Dzn9yykZUk
— CNBC-TV18 (@CNBCTV18Live) September 11, 2024
Federal Reserve officials have indicated they are increasingly confident that inflation is returning to their comfort target of 2% and are now shifting their focus to supporting the labor market and the economy.
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