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.
The energy index decreased 3.6% for the 12 months ending in August on an unadjusted basis, although prices increased 5.6% on a seasonally adjusted month-over-month basis after rising just 0.1% in July.
Gas prices rose 10.6% in August following a 0.2% increase in the previous month.
Within core inflation, rent prices continued to surge. The index for rent and owners' equivalent rose 0.5% and 0.4% on a monthly basis, respectively. Owners' equivalent rent is the hypothetical rent a homeowner would pay.
The shelter index was the largest factor in the monthly increase of core inflation, increasing 0.3% month-over-month and 7.3% over the last year. Still, both of those measures were down compared to July's 7.7% annual gain and 0.4% monthly jump.
Other indexes that rose in August included motor vehicle insurance, medical care, and personal care, BLS noted.
The indexes for lodging away from home, recreation, and used cars and trucks were among those that decreased over the month. The monthly prices for used cars and trucks dropped another 1.2% in August after seeing prices fall 1.3% in July.
The food index increased 4.3% in August over the last year, with food prices rising 0.2% from July to August. The index for food at home increased 0.2% over the month, after rising 0.3% in July.
The index for meats, poultry, fish, and eggs rose 0.8% in August as the index for pork increased 2.2%. The index for other food at home increased 0.2% over the month and the index for cereals and bakery products rose 0.5%, according to the BLS.
Egg prices, however, fell another 2.5% month-over-month after dropping 2.2% in July and 7.3% in June.
US stocks edged lower in early trading following the release of the data. Treasury yields jumped about 9 basis points to trade around 4.3%.