U.S. consumer inflation picked up in August, driven in part by sharply higher gasoline prices, while the annual headline rate held steady and the annual core rate eased to its lowest level since March 2021, according to figures released Friday by the Labor Department.
Prices paid by U.S. consumers rose 0.4% in August, according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics, matching expectations and following a 0.1% increase in July.
The CPI, a key inflation gauge, measures changes in what American consumers pay for a broad basket of goods and services, ranging from grocery aisles to gas pumps.
Food prices rose 0.1% in August for a second month in a row. Grocery store prices were unchanged after declining 0.1% in July, while restaurant prices increased 0.3% for a second straight month.
Over the past year, overall food prices advanced 2.7%, down from 3.0% in July. Grocery prices rose 2.2%, down from 2.7%, while dining-out costs increased 3.4%, the same annual rate for a third consecutive month.
Energy prices boosted overall consumer inflation. Gasoline prices surged 3.9% in August after falling 2.9% in July and were 27.4% higher than a year earlier, up from a 24.6% annual increase in July.
Gasoline prices accounted for "over one third of the monthly all items increase," the CPI report noted.
The broader energy index, which includes gasoline, electricity and fuel oil, rose 2.1% in August after falling 1.5% in July. Compared with a year earlier, energy prices increased 16.3%, versus a 14.7% annual rise in July.
Excluding the volatile food and energy components, core consumer prices rose 0.3% in August, one-tenth of a percentage point above most estimates, after increasing 0.2% in July.
Shelter costs advanced 0.3% in August after two straight monthly increases of 0.1%. Over the past year, shelter prices rose 3.0%, down from 3.2% in July.
The shelter component of the CPI includes apartment rents, owners’ equivalent rent — an estimate of what homeowners would pay to rent their homes — lodging away from home such as hotels and motels, housing at schools, and tenants’ and household insurance.
In other key categories:
- Clothing prices were unchanged in August after rising 0.1% in July and were 3.6% higher than a year earlier.
- New vehicle prices rose 0.3% in August after increasing 0.1% in July and were 0.6% higher year over year.
- Used car and truck prices increased 0.4% in August for a second straight month but remained 2.3% lower than a year earlier.
- Airline fares surged 2.7% in August following a 2.2% increase in July and were 23.4% higher year over year.
In line with estimates, the headline annual inflation rate held at 3.4% for the 12 months ending in August, unchanged from July.
Core inflation rose 2.4% over the 12 months through August — the lowest core inflation rate since March 2021 — in line with expectations and down from 2.5% in July.
This core, "all items less food and energy" index is among the inflation measures monitored by Federal Reserve policymakers to help assess price trends and guide monetary policy decisions.
The following table of key inflation figures covers the seven months through August, as published by the U.S. Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi) on September 11, 2026.
To compile the CPI, the BLS collects prices each month in 75 urban areas from about 6,000 housing units and approximately 22,000 retail establishments.
February 2026 to August 2026 Consumer Prices – Gains & Losses in Percent
(Seasonally Adjusted from Prior Month and Unadjusted 12-Month)
| Feb 2026 | March 2026 | April 2026 | May 2026 | June 2026 | July 2026 | Aug 2026 | 12-Month | |
| All items | 0.3 | 0.9 | 0.6 | 0.5 | -0.4 | 0.1 | 0.4 | 3.4 |
| Food | 0.4 | 0.0 | 0.5 | 0.2 | 0.2 | 0.1 | 0.1 | 2.7 |
| Food at home | 0.4 | -0.2 | 0.7 | 0.1 | 0.2 | -0.1 | 0.0 | 2.2 |
| Food away from home | 0.3 | 0.2 | 0.2 | 0.3 | 0.2 | 0.3 | 0.3 | 3.4 |
| Energy | 0.6 | 10.9 | 3.8 | 3.9 | -5.7 | -1.5 | 2.1 | 16.3 |
| Energy commodities | 1.1 | 21.3 | 5.6 | 6.7 | -9.5 | -2.9 | 4.2 | 28.0 |
| Gasoline (all types) | 0.8 | 21.2 | 5.4 | 7.0 | -9.7 | -2.9 | 3.9 | 27.4 |
| Fuel oil | 11.1 | 30.7 | 5.8 | 3.8 | -9.2 | -1.7 | 10.1 | 52.0 |
| Energy services | 0.2 | 0.4 | 1.6 | 0.4 | -0.7 | 0.3 | -0.4 | 4.0 |
| Electricity | -0.7 | 0.8 | 2.1 | 0.6 | -1.0 | 0.1 | -0.2 | 3.8 |
| Utility (piped) gas service | 3.1 | -0.9 | -0.1 | -0.5 | 0.5 | 0.7 | -1.1 | 4.4 |
| All items less food and energy | 0.2 | 0.2 | 0.4 | 0.2 | 0.0 | 0.2 | 0.3 | 2.4 |
| Commodities less food and energy | 0.1 | 0.1 | 0.0 | -0.1 | -0.1 | 0.2 | 0.1 | 0.7 |
| New vehicles | 0.0 | 0.1 | -0.2 | -0.3 | 0.0 | 0.1 | 0.3 | 0.6 |
| Used cars and trucks | -0.4 | -0.4 | 0.0 | 0.1 | -0.2 | 0.4 | 0.4 | -2.3 |
| Apparel | 1.3 | 1.0 | 0.6 | 0.3 | -0.6 | 0.1 | 0.0 | 3.6 |
| Medical care commodities | 0.0 | -1.0 | -0.4 | -0.7 | -0.2 | -0.6 | -0.2 | -2.7 |
| Services less energy | 0.3 | 0.2 | 0.5 | 0.3 | 0.0 | 0.2 | 0.3 | 3.0 |
| Shelter | 0.2 | 0.3 | 0.6 | 0.3 | 0.1 | 0.1 | 0.3 | 3.0 |
| Transportation services | 0.2 | 0.6 | 0.3 | -0.6 | -0.3 | 0.3 | 0.5 | 2.4 |
| Medical care services | 0.6 | 0.0 | 0.0 | 0.5 | -0.1 | 0.6 | -0.2 | 2.5 |
The BLS releases inflation data around the middle of the month, covering consumer prices surveyed up to the previous month. The Consumer Price Index (CPI) for September and the latest annual period will be made public on October 14, 2026.
The CPI data are also used to calculate inflation rates and power this site’s U.S. Inflation Calculator, which displays the cumulative inflation and the change in the buying power of the U.S. dollar over time.
