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August US CPI Inflation Accelerates to 3.4% Annual Rate

By Markets Desk · 2026-09-12 · 1 min read
A stack of generic grocery items like bread, milk, and eggs on a wooden table
Illustration: Tradingbird

US consumer prices rose 0.4% in August, accelerating from the 0.1% gain in July.

The Bureau of Labor Statistics released the August 2026 Consumer Price Index report on September 11. Headline inflation increased 0.4% during the month on a seasonally adjusted basis. This marked a sharp acceleration from the 0.1% monthly rise recorded in July.

Annual inflation remained steady at 3.4% over the 12 months ending in August. This figure was unchanged from the annual rate reported for July. The data provides a current measure of how quickly the cost of everyday goods and services is rising for American consumers.

Energy Drives Monthly Price Surge

Gasoline prices rose 3.9% in August, accounting for more than one third of the total monthly increase. Overall energy prices climbed 2.1% during the period. These volatile categories were the primary driver behind the acceleration in headline inflation.

Shelter costs increased 0.3% while food prices rose 0.1%. These steady gains in essential categories contributed to the overall monthly figure. The mix of rapid energy gains and slower service sector inflation defines the current economic landscape.

Core Inflation Eases Slightly

Core inflation, which excludes food and energy, rose 0.3% in August. On an annual basis, core CPI decreased to 2.4% from 2.5% in July. This slight easing suggests underlying price pressures are moderating despite the headline spike.

Next Data Release Scheduled

The September 2026 inflation report is scheduled for release on October 14 at 8:30 a.m. ET. This upcoming data point remains critical for Federal Reserve interest rate decisions. Inflation currently sits above the central bank's long-term 2% target. The report will also provide the final data needed for the 2027 Social Security cost-of-living adjustment. As noted by GN markets, the focus remains on whether price stability returns to the economy.

Based on reporting by marca.com, compiled by the Tradingbird desk.

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