In August 2023, the Consumer Price Index for All Urban Consumers (CPI-U) in the United States rose by 0.6 percent, primarily driven by surging gasoline prices and continued increases in housing costs, contributing to a 3.7 percent increase in the index over the past year. Food prices remained relatively stable, with a 0.2 percent increase, while energy prices saw a substantial 5.6 percent rise during the month. Excluding food and energy, the core CPI increased by 0.3 percent, with housing costs playing a significant role. Over the past 12 months, core inflation stood at 4.3 percent, marked by notable increases in shelter and various other categories. Read the full report from the U.S. Bureau of Labor Statistics
In August 2023, the Consumer Price Index for All Urban Consumers (CPI-U) in the United States increased by 0.6 percent on a seasonally adjusted basis, following a 0.2 percent increase in July. Over the last 12 months, the CPI-U for all items increased by 3.7 percent before seasonal adjustment.
The main contributors to the August increase were:
- Gasoline prices, which accounted for over half of the overall increase.
- Continued advancement in the shelter index, which has been rising for 40 consecutive months.
- An increase in the energy index, which rose by 5.6 percent, driven by all major energy components.
- A 0.2 percent increase in the food index, mirroring July’s performance. Food at home increased by 0.2 percent, while food away from home rose by 0.3 percent.
Excluding food and energy, the CPI-U rose by 0.3 percent in August, following a 0.2 percent increase in July. Notable increases included rent, owners’ equivalent rent, motor vehicle insurance, medical care, and personal care, while indexes for lodging away from home, used cars and trucks, and recreation decreased.
Over the past 12 months, the all-items index increased by 3.7 percent, higher than the 3.2 percent increase in the previous 12 months. The all-items index, excluding food and energy, rose by 4.3 percent. The energy index decreased by 3.6 percent over the last year, while the food index increased by 4.3 percent.
Specifically regarding food:
- The food index increased by 0.2 percent in August, consistent with July.
- Food at home rose by 0.2 percent, with various grocery store food groups experiencing both increases and decreases.
- The food away from home index increased by 0.3 percent.
- Over the last 12 months, the food at home index increased by 3.0 percent, with cereals and bakery products rising by 6.0 percent, while the meats, poultry, fish, and eggs index remained unchanged.
In terms of energy:
- The energy index increased by 5.6 percent in August, with gasoline prices rising by 10.6 percent.
- Electricity and natural gas indexes also increased, while the fuel oil index increased by 9.1 percent.
- Over the past 12 months, the energy index decreased by 3.6 percent, with the gasoline index falling by 3.3 percent and the natural gas index dropping by 16.5 percent.
Excluding food and energy:
- The index for all items, excluding food and energy, increased by 0.3 percent in August, driven by the shelter index, which rose by 0.3 percent.
- Other indexes that increased in August included motor vehicle insurance, airline fares, personal care, new vehicles, and household furnishings and operations.
- The medical care index increased by 0.2 percent, with hospital services rising by 0.7 percent.
- Used cars and trucks index fell by 1.2 percent, and the recreation index declined by 0.2 percent.
Over the past 12 months, the index for all items, excluding food and energy, rose by 4.3 percent, with the shelter index accounting for over 70 percent of this increase.
In summary, the report indicates that in August 2023, the CPI-U increased moderately, driven by higher gasoline prices and continued increases in housing costs. Food prices remained relatively stable, and energy prices rose substantially during the month. Excluding food and energy, the core CPI also increased, primarily due to rising housing costs and other factors. Over the past year, overall inflation has been on the rise, with notable increases in shelter and certain other categories.
