The Consumer Price Index (CPI) for August 2023 was released today by the U.S. Bureau of Labor Statistics. The CPI measures the change in prices paid by consumers for a basket of goods and services.
The CPI rose 0.2% in August, after rising 0.3% in July. The 12-month change in the CPI was 5.4%, down from 5.9% in July.
The increase in the CPI was driven by higher prices for food, energy, and shelter. The food index rose 0.4% in August, after rising 0.5% in July. The energy index rose 0.3% in August, after falling 0.1% in July. The shelter index rose 0.2% in August, after rising 0.3% in July.
The core CPI, which excludes food and energy prices, rose 0.1% in August, after rising 0.2% in July. The 12-month change in the core CPI was 4.3%, down from 4.6% in July.
The August CPI data release was met with mixed reactions from economists. Some economists were relieved that inflation had slowed from July, while others were disappointed that it remained high.
The Federal Reserve is closely watching the inflation data. The Fed has raised interest rates three times this year in an effort to cool inflation. However, it is unclear how effective these rate hikes will be in bringing inflation down to the Fed’s target of 2%.
The next CPI data release will be on October 12, 2023.
Here are some of the key takeaways from the August CPI data release:
- Inflation remains high, but it has slowed from July.
- The increase in the CPI was driven by higher prices for food, energy, and shelter.
- The core CPI, which excludes food and energy prices, also rose in August.
- The Federal Reserve is closely watching the inflation data and is expected to continue raising interest rates.
The August CPI data release is a reminder that inflation is still a major economic challenge. It remains to be seen whether the Fed’s efforts to cool inflation will be successful.