News

The consumer price index increased 0.4% last month following a 0.2% uptick in July. Over the past 12 months, the index rose 2.9% before seasonal adjustment (Bureau of Labor Statistics).

What’s behind it: A 0.4% rise in shelter prices was a significant cause of the overall increase in costs in August, despite the pace of growth in shelter prices slowing notably over the past two years. Meanwhile, the food index edged up 0.5%, while energy grew 0.7% due to a 1.9% jump in gasoline prices.

• Excluding the always-volatile food and energy prices, consumer prices advanced 0.3% in August.

Year in review: The 2.9% year-over-year increase in August follows a 2.7% yearly gain in July.

• Meanwhile, prices excluding food and energy grew 3.1% over the year ending in August.
• Over that time period, energy prices ticked up 0.2%, but food prices climbed 3.2%.

The NAM says: “Both the headline and core inflation rate have ticked up in recent months amid an increase in core goods prices, but likely not enough to deter Federal Reserve officials from cutting their interest rate target next week, particularly since weakness in the labor market has increased notably,” said NAM Chief Economist Victoria Bloom.