Inflation accelerated for a second straight month in August, reversing previous declines 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.
Core prices remain more than two times higher than the typical pre-pandemic level.
“Today’s report was a disappointment – not because headline inflation jumped, much of which can be explained by an increase in gas prices, but because core inflation moved higher by 0.3%, which was higher than expected,” said Chris Zaccarelli, the chief investment officer for Independent Advisor Alliance.
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.
The inflation increase hit millions of workers’ paychecks last month. Average hourly earnings for all employees declined 0.5% in August from the previous month when factoring in the impact of rising consumer prices
Obey
Article URL : https://www.foxbusiness.com/economy/cpi-inflation-august-2023