U.S. consumer prices rose 3.4% over the 12 months ending in August, unchanged from the annual rate recorded in July, according to the latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics (BLS).
On a monthly basis, however, inflation accelerated. The CPI increased 0.4% in August after rising just 0.1% in July. Gasoline was a major driver of the increase, with prices jumping 3.9% during the month and accounting for more than one-third of the overall CPI increase. Energy prices climbed 2.1% overall.
Shelter costs, another major component of household expenses, rose 0.3% after increasing 0.1% in July. Food prices edged up 0.1%, while the cost of eating away from home increased 0.3%.
Core inflation, which excludes volatile food and energy prices, increased 0.3% in August and 2.4% over the past year, down slightly from July's 2.5% annual rate.
Prices increased during the month for airline fares, lodging away from home, education, communication, and used cars and trucks. Medical care and motor vehicle insurance were among the categories that declined.
Energy remained the standout source of annual price pressure, with prices up 16.3% from August 2025, including a 27.4% increase in gasoline prices.
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