U.S. inflation accelerated in August as gasoline and energy costs helped push consumer prices higher, adding pressure on household budgets and influencing the Federal Reserve’s decision to raise interest rates.
The Consumer Price Index rose 0.4% in August after increasing just 0.1% in July, according to the Bureau of Labor Statistics. Prices were 3.4% higher than a year earlier.
Gasoline prices jumped 3.9% during the month and accounted for more than one-third of the overall monthly increase. The broader energy index rose 2.1%.
Shelter costs increased 0.3%, while food prices rose 0.1%. Grocery prices were essentially unchanged for the month, although food prices overall remained 2.7% higher than a year earlier.
The figures highlight the renewed inflationary pressure facing American consumers, particularly as energy markets contend with disruptions connected to conflicts in the Middle East.
Inflation has fallen sharply from the four-decade highs reached earlier in the decade but has remained stubbornly above the Federal Reserve’s 2% target.
The August report came days before the Fed raised its benchmark interest rate by a quarter percentage point.
Federal Reserve officials have indicated they are particularly concerned about inflation becoming entrenched across multiple parts of the economy rather than remaining concentrated in volatile categories such as gasoline.
For consumers, persistent inflation means prices generally continue to rise even when the pace of those increases slows.
