August U.S. CPI Report in Line With Expectations, With Inflation at a 3.7% Annual Rate

Editor’s Note: This article was partially generated by Wordsmith, an automated smart-text platform, using data from the Bureau of Labor Statistics. The article has been reviewed by Morningstar editors.

The Bureau of Labor Statistics reported that the Consumer Price Index increased 3.7% in August from year-ago levels—an increase from July’s 3.2% rate, but well below the June 2022 peak of 9.1%. Core CPI, which excludes volatile food and energy costs, climbed 4.3% in August over the last 12 months after rising 4.7% in July.

The headline rise of 3.7% came in close to economists’ expectations of 3.6%. The core CPI reading matched expectations.

The CPI rose 0.6% in August from month-ago levels after rising 0.2% in July. Core CPI climbed 0.3% after rising 0.2% in July.

August CPI Report Key Stats

• CPI climbed 0.6% for the month after rising 0.2% in July.
• Core CPI climbed 0.3% after rising by 0.2% in July.
• CPI rose 3.7% year over year after increasing by 3.2% the prior month.
• Core CPI from year-ago levels after growing 4.7% in July.

Food prices increased 0.2% in August after growing by the same amount in July. Food-at-home prices increased 0.2% over the month, while food-away-from-home (restaurant) prices rose 0.3%.

Energy prices rose over the month, up 5.6% overall, after increasing 0.1% the prior month. Utility (piped) gas service prices gained 0.1%, fuel oil prices increased 9.1%, gasoline prices rose 10.6%, and electricity prices climbed 0.2%.