The Consumer Price Index (CPI) reported that the all items index increased 2.5 percent over the last twelve months. The Federal Reserve’s targeted annual inflation rate is two percent.
The index for shelter rose 0.5 percent in August and was the main factor in the all items increase. The food index increased 0.1 percent in August after rising 0.2 percent in July. The index for food away from home rose 0.3 percent over the month, while the index for food at home was unchanged. The energy index fell 0.8 percent over the month after being unchanged the preceding month.
The food index increased by 0.1 percent in August after rising by 0.2 percent in each of the previous two months. The index for food at home was unchanged in August. Two of the six major grocery store food group indexes increased over the month while the other four indexes declined in August. The index for meats, poultry, fish, and eggs rose 0.8 percent in August as the index for eggs increased 4.8 percent. The index for chicken increased 0.7 percent in that same period. The index for food at home rose 0.9 percent over the last 12 months. The meats, poultry, fish, and eggs index rose 3.2 percent over the last 12 months. Over the same period, the index for other food at home rose 0.4 percent.
The energy index decreased 0.8 percent in August, after being unchanged in July. The gasoline index fell 0.6 percent over the month. (Before seasonal adjustment, gasoline prices declined 2.7 percent in August.) The electricity index decreased 0.7 percent over the month, and the natural gas index fell 1.9 percent in August. The energy index decreased 4.0 percent over the past 12 months. The gasoline index fell 10.3 percent over this 12-month span, and the natural gas index declined 0.1 percent. The index for fuel oil fell 12.1 percent over the same period. In contrast, the index for electricity increased 3.9 percent over the last 12 months.
The full CPI report can be found here.
