The consumer inflation rate increased 0.4 percent in August after rising 0.6 percent in July,…
The consumer inflation rate increased 0.4 percent in August after rising 0.6 percent in July, according to the Labor department. Economists now fear that the effects of the coronavirus pandemic might include pushing inflation beyond the 2% annual range that is considered “comfortable”.
According to Labor’s latest report, The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August on a seasonally adjusted basis after rising 0.6 percent in July, the U.S. Bureau of Labor Statistics reported today.
Over the last 12 months, the all items index increased 1.3 percent before seasonal adjustment.
The monthly increase in the seasonally adjusted all items index was broad-based; a sharp rise in the used cars and trucks index was the largest factor, but the indexes for gasoline, shelter, recreation, and household furnishings and operations also contributed. The energy index rose 0.9 percent in August as the gasoline index rose 2.0 percent.
The food index rose 0.1 percent in August after falling in July; an increase in the food away from home index more than offset a slight decline in the food at home index.
The index for all items less food and energy rose 0.4 percent in August after increasing 0.6 percent in July. A sharp rise in the index for used cars and trucks accounted for over 40 percent of the increase; the indexes for shelter, recreation, household furnishings and operations, apparel, motor vehicle insurance, and airline fares also rose.
The all items index increased 1.3 percent for the 12 months ending August; this figure has been rising since the period ending May 2020, when the 12-month increase was 0.1 percent. The index for all items less food and energy increased 1.7 percent over the last 12 months.
The food index increased 4.1 percent over the last 12 months, with the index for food at home rising 4.6 percent. Despite recent monthly increases, the energy index fell 9.0 percent over the last 12 months.