The Consumer Price Index rose 0.4% in August and 3.4% from a year earlier, the U.S. Bureau of Labor Statistics reported in its August CPI release, a result closely watched in cpi today coverage.
The BLS news release says “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in August” and that the “all items index rose 3.4 percent for the 12 months ending August.”
Core inflation, which excludes food and energy, also ticked up: the BLS reported that the “all items less food and energy index rose 0.3 percent in August” and was 2.4 percent higher than a year earlier.
Analysts and markets reacted to the hotter-than-expected monthly print. Reuters reported that the August CPI increase pushed market pricing toward higher odds of an interest-rate move by the Federal Reserve, and financial news outlets noted that investors would weigh the report alongside recent wholesale-price data.
The government had released related inflation data this week: the Bureau of Labor Statistics also publishes the monthly Producer Price Index, which financial coverage linked to the CPI print; our site has prior coverage of that release and the unfolding market response.
Why this matters: the headline CPI and the core CPI readings feed into how the Federal Reserve and investors judge underlying inflation pressure. Reuters said investors will use the report to reassess the path for rates, while the BLS tables show which categories — including gasoline and shelter — contributed to the monthly rise.
Put together, the BLS monthly CPI release, the core-CPI uptick, and market moves mark a coordinated data point in an active week for economic indicators following recent PPI and jobs reports.
Sources
- U.S. Bureau of Labor Statistics — provided the August CPI monthly change (0.4%), the 12-month change (3.4%), and the core (all items less food and energy) monthly rise (0.3%).
- Reuters — reported market reaction and that investors priced higher odds of a Fed rate move after the August CPI release.
- CNBC — reported the monthly CPI and core figures and noted markets’ focus on the Fed outlook.
