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Sep 14, 2022
Inflation Rose Higher Than Expected in August

Inflation in the U.S. ticked back up in August, despite falling gas prices, according to data recently released from the Bureau of Labor Statistics.

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after being unchanged in July, the U.S. Bureau of Labor Statistics reported.

Over the last 12 months, the all items index increased 8.3 percent before seasonal adjustment. Increases in the shelter, food and medical care indexes were the largest of many contributors to the broad-based monthly all items increase. These increases were mostly offset by a 10.6-percent decline in the gasoline index.

The food index continued to rise, increasing 0.8 percent over the month as the food at home index rose 0.7 percent.

The energy index fell 5.0 percent over the month as the gasoline index declined, but the electricity and natural gas indexes increased.

The index for all items less food and energy rose 0.6 percent in August, a larger increase than in July.

The indexes for shelter, medical care, household furnishings and operations, new vehicles, motor vehicle insurance, and education were among those that increased over the month. There were some indexes that declined in August, including those for airline fares, communication, and used cars and trucks.

The all items index increased 8.3 percent for the 12 months ending August, a smaller figure than the 8.5- percent increase for the period ending July.

“We were hoping for something more positive, but [the August data] is not,” Sung Won Sohn, an economics professor at Loyola Marymount University and president of SS Economics, said in a CNN Business article. “I think inflation is certainly alive and well.”