Consumer Prices Rie .4% in August 2026-Energy is the Culprit

Source BLS

Consumer prices rose about 0.4% in August, with prices up 3.4% from a year ago. Gasoline prices climbed 3.9% during the month. That will have impact in a few other areas. Core CPI also increased, while food prices are up 2.7% over the past year. Not looking particularly positive in this report. 

The biggest concern is energy. Energy prices have risen 16.3% over the past year, creating a significant headwind for consumers and businesses. Because energy is an important input throughout the economy, higher costs can spread across transportation, production, and other areas. 

For now, we can continue to watch the data and see whether these pressures begin to weigh more heavily on economic growth. They may be short lived or they may be longer. 

(Illustrative Only)
Joan comes in from
the cottage to buy some
supplies. She hands
over some money for
some lamp oil and
a gallon of gas for her
chainsaw. 
The clerk lets her
know the prices are
changing rapidly so 
stock up before
winter. 😔

Consumer Prices Rise 0.4% in August 2026

• The Consumer Price Index (CPI) increased 0.4% in August, following a 0.1% increase in July.
• Consumer prices increased 3.4% over the 12 months ending in August, unchanged from July.
• Gasoline prices rose 3.9% in August, contributing more than one-third of the overall monthly increase. Energy prices increased 2.1%.
• Core CPI, excluding food and energy, increased 0.3% in August and 2.4% over the past year. Shelter prices rose 0.3% during the month and 3.0% over the year.
• Food prices increased 0.1% in August and 2.7% over the past year. Food-at-home prices were unchanged during the month, while food-away-from-home prices increased 0.3%.
• Energy remains a major inflation pressure, rising 16.3% over the past year, with gasoline prices up 27.4%.

U.S. Bureau of Labor Statistics. (2026, September 11). Consumer Price Index—August 2026. U.S. Department of Labor. https://www.bls.gov/news.release/cpi.nr0.htm