By Matthew Holloway |
The U.S. Consumer Price Index rose 0.4% in August, accelerating from July’s 0.1% increase, while annual inflation remained at 3.4%, according to the latest release from the Bureau of Labor Statistics. Gasoline prices accounted for more than one-third of the monthly increase.
In the Phoenix-Mesa-Scottsdale area, consumer prices increased 2.5% over the year ending in August, below the national rate, but eased back from June’s 2.8%. Local energy prices rose 19.1% over that period, including a 32.5% increase in gasoline prices.
Nationally, gasoline prices increased 3.9% during August, and the broader energy index rose 2.1%. Shelter costs increased 0.3%, while food prices rose 0.1%. Grocery prices were unchanged for the month, and food away from home increased 0.3%.
Core inflation, which excludes food and energy, increased 0.3% in August following a 0.2% rise in July. Over the preceding 12 months, core prices increased 2.4%, energy prices rose 16.3%, and food prices increased 2.7%.
The national monthly figures are seasonally adjusted. The annual changes are measured before seasonal adjustment.
The Joint Economic Committee (JEC) Republicans’ August inflation update, released this month, provided calculations to two decimal places. It reported monthly headline inflation of 0.40% and core inflation of 0.29%, compared with Cleveland Federal Reserve forecasts of 0.36% and 0.20%, respectively.
The committee’s calculations placed annual headline inflation at 3.40% and annual core inflation at 2.45%. Its report notes that differences in change figures can result from rounding.
Across the four regions identified in the committee’s accompanying release, annual inflation was highest in the Northeast at 3.9%, followed by the Midwest at 3.6%, the West at 3.2%, and the South at 3.1%. In its release accompanying the update, JEC Republicans reported annual inflation of 3.9% in the Northeast, 3.6% in the Midwest, 3.2% in the West, and 3.1% in the South.
Phoenix-area prices increased 0.5% over the two months ending in August. During that period, local energy prices increased 4.6%, food prices declined 1.6%, and prices excluding food and energy rose 0.5%. The local BLS figures are not seasonally adjusted and cover a two-month period.
Over the year, Phoenix-area food prices increased 1.7%, including a 1.0% increase in grocery prices and a 2.5% increase in food away from home. Local core inflation was 1.3%, while shelter prices declined 0.3%.
Inflation-adjusted earnings were mostly steady in August. Real average weekly earnings for employees on private nonfarm payrolls increased 0.16%, while real average hourly earnings declined 0.09%. Over the year, real hourly earnings declined 0.3% and real weekly earnings increased 0.3%.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
