CONSUMER PRICE INDEX - AUGUST 2026
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in August
after rising 0.1 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all
items index increased 3.4 percent before seasonal adjustment.
The index for gasoline rose 3.9 percent in August, accounting for over one third of the monthly all items increase. The
index for energy increased 2.1 percent over the month. The shelter index rose 0.3 percent in August after rising 0.1
percent in July. The index for food increased 0.1 percent over the month, as the index for food away from home increased
0.3 percent.
The index for all items less food and energy rose 0.3 percent after increasing 0.2 percent in July. Indexes that
increased over the month include communication, lodging away from home, airline fares, education, and used cars and
trucks. Conversely, the index for medical care and the index for motor vehicle insurance were among the major indexes
that decreased in August.
The all items index rose 3.4 percent for the 12 months ending August as it did for the 12 months ending July. The all
items less food and energy index rose 2.4 percent over the year, following a 2.5-percent increase over the 12 months
ending July. The energy index increased 16.3 percent for the 12 months ending August. The food index increased 2.7
percent over the last year.
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
The options market now predicts an 85% chance that the FOMC will raise the Fed funds rate at their September 16 meeting.
Wendy