Consumers are Paying more for Food and Energy

Consumer see inflation everyday.

The Consumer Price Index (CPI) rose 0.6% in August, after increasing 0.2% in July. This is the highest monthly increase since March 2022. The year-over-year CPI increase was 3.7%, the highest since November 2018.

The largest contributor to the monthly increase was gasoline, which rose 5.6%. Shelter costs also increased, rising for the 40th consecutive month. Food prices increased 0.2%, with food at home prices rising 0.2% and food away from home prices rising 0.3%.

Core inflation, which excludes food and energy prices, rose 0.3% in August, following a 0.2% increase in July. Core inflation has been trending lower in recent months, but it is still above the Federal Reserve’s target of 2%.

The following are some of the key takeaways from the August CPI report:

• Inflation remains elevated, but it is showing some signs of moderation.

• Gasoline prices are a major driver of inflation.

• Shelter costs continue to rise.

• Food prices are rising at a moderate pace.

• Core inflation is still above the Federal Reserve’s target.

Consumers should continue to be mindful of their spending as inflation remains a challenge.

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