by Lucia Mutikani
(Reuters) – U.S. consumer prices rose the most in more than a year in August, driven in part by rising gasoline costs but a moderate rise in inflation underlying could encourage the Federal Reserve (Fed) to keep its interest rates unchanged next Wednesday.
The consumer price index (CPI) increased by 0.6% last month, the biggest increase since June 2022, after two consecutive increases of 0.2% in July and June, official statistics released on Wednesday show. by the Department of Labor.
Gasoline prices accelerated in August, reaching a peak of $3.984 per gallon in the third week of the month, up from $3.676 during the same period in July, according to data from the U.S. Gasoline Agency. Energy Information (EIA).
The CPI rose 3.7% in August year-on-year, more than expected, after rising 3.2% in July, far from the Fed’s 2% inflation target.
This is the second consecutive month of rising inflation at an annual rate.
Economists polled by Reuters had forecast consumer prices rising 0.6% month-on-month and 3.6% year-on-year.
The report was released a week before the Fed’s interest rate decision and follows data showing easing labor market conditions in August.
The basic price index (“core CPI”), which excludes food products and energy, increased in August by 0.3% over one month.
Over one year, it increased by 4.3% in August, after an increase of 4.7% in July, the lowest year-on-year increase since September 2021.
Economists expected increases of 0.2% over one month and 4.3% over one year for basic prices.
(Report Lucia Mutikani, Diana Mandiá, edited by Blandine Hénault)
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