The Bureau of Labor Statistics reported that the Consumer Price Index increased by 0.4% in August on a seasonally adjusted basis. This headline figure aligned with the Dow Jones consensus, while core CPI, excluding food and energy, rose by 0.3%, exceeding the expected 0.2%.
On an annual basis, headline inflation reached 3.4%, and core inflation stood at 2.4%. These figures compare to FactSet projections of 3.3% for headline and 2.4% for core inflation. In July, the headline monthly increase was 0.1%.
Energy prices rose by 2.1% during the month, with gasoline prices climbing by 3.9%. This increase in gasoline costs contributed to more than one-third of the total headline inflation rise. Meanwhile, food prices grew by 0.1% month-over-month.
The Federal Open Market Committee is scheduled to meet next week to determine interest rates. Policymakers will review this inflation data as one of the final major indicators before reaching their decision.
