The Consumer Price Index rose 0.6% in August after increasing by 0.2% in July, according to the U.S. Bureau of Labor Statistics. The amount equates to a 3.7% annual increase that prices rose over the past year, the fastest increase since May.
The index for gasoline was the largest contributor to the monthly all items increase, accounting for over half of the increase. The energy index rose by 5.6%. The index for shelter also contributed and has risen for 40 straight months. Food indexes continue to increase at a rate of 0.2%. Natural gas service, fuel oil, and used trucks and services are some of the few indexes that have seen decreases over the last 12 months.
But the government’s latest consumer price index report is unlikely to cause panic at the Federal Reserve, which will decide next week whether to further raise interest rates. That’s because the CPI increase in August was driven by a surge in fuel prices, and there’s not much the Fed can do about that.
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