09/30/2026
Inflation remained elevated in August, with the Consumer Price Index rising 0.4% for the month and 3.4% over the past 12 months. Core inflation, which excludes food and energy, increased 0.3% in August and 2.4% year over year. Energy was a major contributor to the latest increase: gasoline prices rose 3.9% during the month and accounted for more than one-third of the overall monthly CPI increase.
The recent rise in energy costs is becoming an important part of the inflation story. Gasoline prices were more than 27% higher than a year earlier, while airfare increased nearly 3% in August and more than 23% year over year. Higher diesel, jet fuel and transportation costs also have the potential to work their way through supply chains, increasing the cost of moving food and other goods.
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