August Inflation Report Price Pressures Remain Stubborn as Gas Pushes Up Inflation Rate

Source: By Jeanna Smialek, New York Times • Posted: Wednesday, September 13, 2023

Consumer prices rose 3.7 percent in the year through August, marking another month of accelerating inflation. The Federal Reserve will closely parse the data as it prepares its next interest-rate decision.

Weekly average U.S. gasoline price

Federal Reserve officials are likely to remain wary about the outlook for inflation following a report released Wednesday: Overall price increases sped up because of a pop in gas prices in August, and a more closely watched index that strips out volatile food and fuel prices climbed at a faster monthly pace than expected.

The Consumer Price Index rose 3.7 percent in the year through August, the report showed. That was both faster than the 3.2 percent July reading, and slightly quicker than the 3.6 percent that economists had expected.