SUSAN VINEYARD - STOCK.ADOBE.COM PHOTOThe U.S. Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for All Urban Consumers rose 0.6% in August on a seasonally adjusted basis, after increasing by 0.2% in July. During the last 12 months, the all items index increased 3.7% before seasonal adjustment.
In a statement, the bureau said the index for gasoline was the largest contributor to the monthly all items increase, accounting for more than half of the rise. Also contributing to the increase was continued advancement in the shelter index, which rose for the 40th consecutive month. The energy index rose 5.6% in August as all the major energy component indexes went up. The food index increased 0.2%.
The all items index, excluding food and energy, rose 0.3% in August, following a 0.2% increase in July. It has risen 4.3% in the last 12 months.
As a result of the increase, The Wall Street Journal reported that inflation was accelerating and could continue to do so. The newspaper also said the Federal Reserve is on course to hold interest rates steady at their meeting next week. Fed officials raised rates in July to a 22-year high.
Elevated gas prices are likely due to Saudi Arabia’s decision to extend cuts to its crude-oil output until the end of the year, according to the International Energy Agency. The WSJ also pointed to a potential strike by the United Auto Workers Union that could disrupt production and push up prices at dealerships.
