US consumer prices rise 0.4% in August, gasoline accounts for over a third of increase

The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.4 per cent in the 12 months ending August, unchanged from the annual increase recorded in July.

Gasoline prices rose 3.9 per cent in August, accounting for more than one-third of the monthly increase in the overall index. The broader energy index increased 2.1 per cent during the month, reversing a 1.5 per cent decline in July.

Shelter costs, another major component of the index, increased 0.3 per cent in August after rising 0.1 per cent in July. Food prices edged up 0.1 per cent, with food away from home rising 0.3 per cent while food at home remained unchanged.

Core CPI, which excludes food and energy prices, increased 0.3 per cent in August after rising 0.2 per cent in July. The increase was driven by higher prices for communication, lodging away from home, airline fares, education and used cars and trucks.

On the other hand, medical care prices declined 0.2 per cent during the month, while motor vehicle insurance fell 0.8 per cent.

Energy prices remained a major source of inflationary pressure on an annual basis. The energy index increased 16.3 per cent in the 12 months ending August, led by a 27.4 per cent rise in gasoline prices.

Food prices increased 2.7 per cent over the year, while food at home rose 2.2 per cent and food away from home increased 3.4 per cent.

The core index rose 2.4 per cent over the 12 months ending August, easing from a 2.5 per cent increase in the 12 months through July. Shelter prices increased 3 per cent over the year.

Among other notable annual movements, airline fares increased 23.4 per cent, while personal care rose 3.8 per cent and recreation increased 2.7 per cent.(ANI)