CPI: Consumer Prices Rose 0.4% in August; Higher than Expected
Prices for shelter, transportation, and food rose in August, pushing consumer inflation to 2.9% year-over-year, the highest since January, U.S. Bureau of Labor Statistics reported.
- The U.S. Consumer Price Index rose 0.4% in August 2025, marking the largest monthly increase in seven months and raising the annual inflation rate to 2.9%.
- This rise followed a 0.2% increase in July and reflected stronger price gains in shelter, food, and energy sectors, with some economists expecting continued rate cuts despite inflation pressures.
- Key contributors to the August increase included a 0.4% rise in shelter, a 0.5% increase in the food index, a 0.7% gain in energy led by a 1.9% jump in gasoline, and higher costs for used vehicles and apparel.
- The core CPI, excluding food and energy, rose 0.3% for the month and 3.1% year over year, driven largely by services such as lodging and airline fares, while staple groceries like pasta and beans became cheaper compared to last year.
- The Federal Reserve faces a balance between supporting the job market with potential rate cuts and managing ongoing inflation pressures, as the probability of a rate reduction at the upcoming FOMC meeting is around 89%.
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Consumer Prices Keep Rising With No Relief in Sight for Families
The U.S. Bureau of Labor Statistics reported today that the Consumer Price Index (CPI) rose 2.9% over the past year, up from 2.7% in July, and climbed 0.4% over the past month. Core CPI – which excludes food and energy – also increased 0.3% in August and 3.1% over the past year. The Department of Labor also released initial claims for unemployment insurance for the week ending September 6th, showing that 263,000 claims were filed, the highest le…
Inflation rose last month as prices for gasoline, groceries, hotel rooms and air tickets rose, along with the cost of used clothes and cars.Inflation accelerated by key price hike was first published on Link Latino NC.Inflation accelerated by key price hike was first posted on September 11, 2025 at 11:46 am.©2024 "Link Latino NC". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, t…
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