August Consumer Price Index Remains Steady at 3.4% as Energy Costs Rise
The Bureau of Labor Statistics reported that the consumer price index rose 3.4% on an annual basis in August, remaining unchanged from July. This figure represents the third consecutive month of decline for the index, though it remains above the trailing 12-month average of 3.1%.
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Economists noted that several factors are contributing to persistent inflation. The Iran war is a major energy shock, restricting oil flows through the Strait of Hormuz and the Strait of Bab el Mandeb. This conflict has driven up prices for gasoline, diesel, and jet fuel. Gasoline prices averaged $4.30 per gallon on Friday, a significant increase from $3.19 a year ago. Diesel prices reached a record high of $6 per gallon. Additional pressures on consumer prices include the artificial intelligence build-out, which has increased demand for computer chips, and tariffs levied by the administration. While the Supreme Court struck down a central piece of the tariff policy in February, the administration continues to use different legal pathways to levy tariffs.
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Here’s the inflation breakdown for August 2026 — in one chart
CNBC
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Consumer Price Index (CPI) for August 2026 is Projected to Rise 3.3% Year-Over-Year
FactSet Insight