Consumer prices edged higher in August as a surge in oil prices contributed to an uptick in headline inflation, according to the latest data from the Bureau of Labor Statistics released Wednesday morning.
The Consumer Price Index (CPI) rose 0.6% over last month and 3.7% over the prior year in August, an acceleration from July’s 0.2% monthly increase and 3.2% annual gain in prices.
The year-over-year increase was slightly higher than economist forecasts of a 3.6% annual jump, according to data from Bloomberg.
A significant rise in energy prices drove the bulk of those increases. Oil prices hit new year-to-date highs on Tuesday with West Texas Intermediate (CL=F) closing just below $89 per barrel. Brent crude futures (BZ=F) sat above $92 per barrel — the highest levels in oil prices since November 2022.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in August climbed 4.3% over last year — a slowdown from the 4.7% annual increase seen in July, according to Bloomberg data. Monthly core prices rose 0.3%, slightly higher than economist expectations of a 0.2% month-over-month gain and also higher than July’s 0.2% monthly rise.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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