Inflation re-accelerated for a second straight month in August, reversing previous declines in prices as consumers continued to grapple with the rising cost of everyday goods.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.6% in August from the previous month, in line with estimates. It marked the steepest monthly increase this year, underscoring the challenge in taming high inflation.
Prices climbed 3.7% from the same time last year, faster than both the 3.2% reading in July and the 3.6% estimate from Refinitiv economists.
A FED PAUSE LIKELY WON’T HELP STRUGGLING CONSUMERS
Other parts of the report also pointed to a slower retreat for inflation. Core prices, which exclude the more volatile measurements of food and energy, climbed 03% and 4.3% annually. While both of those figures are lower than previous readings, the monthly core measure climbed faster than expected. but high
Core prices remain more than two times higher than the typical pre-pandemic level.
Scorching-hot inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
“This was bad news for Americans who feel inflation most acutely when filling their tanks and writing their rent checks,” said Robert Frick, corporate economist with Navy Federal Credit Union. “Some rent relief is in sight, but it won’t occur until next year, and it will be a small comfort given how high shelter costs have risen. And given core inflation rose, it’s clear inflation around current levels may be with us for months.”
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