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.
With inflation still running above the Federal Reserve's 2% target, economists see increased pressure on policymakers to keep monetary policy restrictive or potentially raise rates if price pressures persist.
