August 2024 Consumer Price Index: Inflation Rises by 2.5%

The image portrays a moment of quiet frustration in a familiar yet increasingly stressful setting: a supermarket. A woman, dressed in a simple tank top, walks down an aisle lined with shelves brimming with products. Her expression betrays a sense of concern as she glances at the brightly colored price tags, which dominate the scene with their inflated numbers. These large, prominent price labels seem to loom over the products, a constant reminder of the strain of rising costs on everyday shopping.
By Jason Chang on September 11, 2024
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The Consumer Price Index (CPI) for August 2024, released by the Bureau of Labor Statistics (BLS), shows a 2.5% increase in inflation over the past 12 months, marking the smallest annual increase since February 2021. The CPI measures the average change in prices paid by urban consumers for goods and services and is a key indicator of inflation trends in the U.S.

  • The August 2024 Consumer Price Index (CPI) recorded a 2.5% inflation increase over the past 12 months, the smallest rise since February 2021.
  • Shelter costs rose by 0.5% in August, driving over 70% of the total inflation increase, with airline fares, motor vehicle insurance, and education also rising.
  • Food prices saw minimal change, with food consumed away from home increasing by 0.3% and food-at-home prices remaining flat.
  • Energy prices dropped by 0.8% in August, with gasoline prices falling by 0.6% and energy costs overall decreasing by 4.0% over the past year.
  • The inflation rate for all items excluding food and energy rose by 3.2%, with ongoing increases in the cost of essentials like medical care and transportation services.

The primary driver of the August increase was shelter, which rose by 0.5% and continues to be a significant factor in inflation, contributing over 70% of the total annual increase in the CPI. Other areas of rising costs included airline fares, motor vehicle insurance, and education, which all saw increases in August .

Food prices showed minimal movement, with the overall food index rising by just 0.1%. Prices for food consumed away from home increased by 0.3%, while the food-at-home index remained flat. However, certain grocery items, such as meats, poultry, fish, and eggs, rose by 0.8%, with egg prices alone spiking 4.8% .

Bureau of Labor Statistics: “Consumer Price Index – August 2024”

Energy prices, on the other hand, provided some relief, falling by 0.8% in August, following a period of stability in July. Gasoline prices dropped by 0.6%, and the energy index as a whole saw a 4.0% decrease over the past year .

Despite these fluctuations, the inflation rate for all items excluding food and energy rose by 3.2% over the past year. The price of essentials like medical care, transportation services, and shelter remained elevated, reflecting ongoing cost pressures on households .

As inflation moderates overall, the August CPI reflects both stability in certain sectors and rising costs in others, particularly for essential services. The BLS will release the next CPI update for September 2024 in October.

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