Consumer Prices Rise 0.4% in August as Gasoline Costs Accelerate

U.S. consumer prices rose 0.4% in August, accelerating from a 0.1% gain in July as gasoline and other energy costs lifted household expenses, the Labor Department reported Friday.

The Consumer Price Index increased 3.4% over the 12 months through August, matching July’s annual pace. Excluding volatile food and energy components, core CPI rose 0.3% for the month, following a 0.2% increase in July. Core prices were up 2.4% from a year earlier, easing from a 2.5% annual increase in July.

Gasoline was the largest contributor to the August increase. The gasoline index climbed 3.9%, accounting for more than one-third of the monthly advance in the overall CPI. The broader energy index rose 2.1% during the month.

Over the past year, energy prices increased 16.3%, largely reflecting a 27.4% increase in gasoline prices. The sharp rise in fuel costs has been a principal source of renewed headline inflation pressure, even as the underlying inflation rate has moderated.

Shelter costs, a closely watched category because of their large weight in the CPI, rose 0.3% after a 0.1% increase in July. Food prices increased 0.1%, with food away from home rising 0.3%.

Other categories recording monthly gains included communication, lodging away from home, airline fares, education, and used cars and trucks.