By The FirstNew data released by the Treasury Department shows inflation rose a surprising 3.7% compared to one year ago, when the rate was already surging at historic levels.
From CNBC:
Inflation posted its biggest monthly increase this year in August as consumers faced higher prices on energy and a variety of other items.
The consumer price index, which measures costs across a broad variety of goods and services, rose a seasonally adjusted 0.6% for the month, and was up 3.7% from a year ago, the U.S. Department of Labor reported Wednesday. Economists surveyed by Dow Jones were looking for respective increases of 0.6% and 3.6%.
However, excluding volatile food and energy, core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Federal Reserve officials focus more on core as it provides a better indication of where inflation is heading over the long term.
Energy prices fed much of gain, rising 5.6% on the month, an increase that included a 10.6% surge in gasoline.
Food prices rose 0.2% while shelter costs, which make up about one-third of the CPI weighting, increased 0.3%. Within shelter, the rent of shelter primary residence index rose 0.5% and increased 7.8% from a year ago. Owners equivalent rent, a key measure that gauges what homeowners believe they could get in rent, increased 0.4% and 7.3% respectively.
