September 13, 2022 8:44 AM EDT
Last Updated 4 min ago
Monthly U.S. consumer prices unexpectedly rise in August; core inflation picks up
Reuters
WASHINGTON, Sept 13 (Reuters) - Monthly U.S consumer prices unexpectedly rose in August as declining gasoline prices were offset by gains in the costs of rent and food, giving cover for the Federal Reserve to deliver another hefty interest rate increase next Wednesday. The consumer price index gained 0.1% last month after being unchanged in July, the Labor Department said on Tuesday.
Economists polled by Reuters had forecast the CPI dipping 0.1%. In the 12 months through August, the CPI increased 8.3%. That was deceleration from the July's 8.5% rise. The annual CPI peaked at 9.1% in June, which was the biggest gain since November 1981.
Overall inflation is slowing as goods prices retreat after surging earlier this year amid a loosening of bottlenecks in global supply chains and a shift in spending back to services.
U.S. gasoline prices have plunged from an average record high above $5 per gallon in June, according to data from AAA. They were averaging $3.707 per gallon on Tuesday.
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https://www.reuters.com/markets/us/monthly-us-consumer-prices-unexpectedly-rise-august-core-inflation-picks-up-2022-09-13/US inflation falls for 2nd straight month on lower gas costs
By CHRISTOPHER RUGABER 16 minutes ago
WASHINGTON (AP) — Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households. Consumer prices surged 8.3% in August compared with a year earlier, the government said Tuesday.
Though still painfully high, that was down from an 8.5% jump in July and a four-decade high of 9.1% in June. On a monthly basis, prices rose 0.1%, after a flat reading in July. Excluding the volatile food and energy categories, so-called core prices jumped 0.6% from July to August, higher than many economists had expected and a sign of inflation’s persistence.
Inflation remains far higher than many Americans have ever experienced and is keeping pressure on the Federal Reserve, the agency tasked with keeping prices stable. The Fed is expected to announce another big increase in its benchmark interest rate next week, which will lead to higher costs for many consumer and business loans.
Inflation has escalated families’ grocery bills, rents and utility costs, among other expenses, inflicting hardships on many households and deepening gloom about the economy despite strong job growth and low unemployment.
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https://apnews.com/article/inflation-economy-prices-f2270f4c6ac55c084108d57cc1aec53a?taid=63207b77ed47e2000150822d
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