US Consumer Price Index Increases 2.5% Year-Over-Year in August

On Wednesday, the US Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis, the same as in July. Over the past 12 months, the all-items index has increased 2.5% before seasonal adjustment.

The index for shelter rose 0.5% in August and was the main factor in the all-item increase. The energy index declined 0.8% over the month, after being unchanged in July. The index for food increased 0.1%, after increasing 0.2% in July. The food away from home index rose 0.3%, while the index for food at home was unchanged.

The index for all items less food and energy rose 0.3% in August, after increasing 0.2% the preceding month. Indexes which increased include shelter, airline fares, motor vehicle insurance, education, and apparel. The indexes for used cars and trucks, household furnishings and operations, medical care, communication, and recreation were among those that decreased over the month.

The all-items index rose 2.5% for the 12 months ending in August, the smallest 12-month increase since February 2021. The all-items less food and energy index rose 3.2% over the last 12 months. The energy index decreased 4.0% year-over-year. The food index increased 2.1%.