Consumer prices rose 0.4% in August as core inflation eased to 2.4%
The annual core rate fell to 2.4%, its lowest since Mar 2021, while the overall 12-month rate held at 3.4%, the Bureau of Labor Statistics reported.
Macro Bullseye · · Updated
The Consumer Price Index rose 0.4% in August from July, the Bureau of Labor Statistics reported. That was faster than the 0.1% gain in July and above the 0.3% rise in August 2025.
The numbers
Aug 2026 data · released Fri, Sep 11
- CPI, change from the prior month
- +0.4%Jul 2026: +0.1%
- CPI, change over 12 months
- 3.4%Jul 2026: 3.4%
- Core CPI (ex food and energy), change from the prior month
- +0.3%Jul 2026: +0.2%
- Core CPI, change over 12 months
- 2.4%Jul 2026: 2.5%
View the data as a table
| Period | Value |
|---|---|
| Aug 2026 | +0.4% |
| Jul 2026 | +0.1% |
| Jun 2026 | −0.4% |
| May 2026 | +0.5% |
| Apr 2026 | +0.6% |
| Mar 2026 | +0.9% |
| Feb 2026 | +0.3% |
| Jan 2026 | +0.2% |
| Dec 2025 | +0.3% |
| Sep 2025 | +0.3% |
| Aug 2025 | +0.3% |
| Jul 2025 | +0.2% |
| Jun 2025 | +0.3% |
| May 2025 | +0.1% |
| Apr 2025 | +0.2% |
| Mar 2025 | 0.0% |
| Feb 2025 | +0.2% |
| Jan 2025 | +0.4% |
| Dec 2024 | +0.3% |
| Nov 2024 | +0.3% |
| Oct 2024 | +0.3% |
| Sep 2024 | +0.2% |
| Aug 2024 | +0.2% |
| Jul 2024 | +0.2% |
Source: Bureau of Labor Statistics, via FRED (Federal Reserve Bank of St. Louis). Revised figures replace earlier ones.Full release
Over the 12 months through August, prices rose 3.4%. That matched the pace in July. A year earlier, in August 2025, the annual rate was 2.9%.
Core CPI, which leaves out food and energy, rose 0.3% in August after a 0.2% gain in July. Core prices rose 2.4% over 12 months, down from 2.5% in July and from 3.1% a year earlier.
The annual core rate has fallen three months in a row. At 2.4%, it is the lowest since Mar 2021, when it was 1.6%.
The monthly headline figure has swung widely this year. It rose 0.9% in March, 0.6% in April and 0.5% in May, fell 0.4% in June, then rose 0.1% in July. The next report, covering September, is due Wednesday, October 14, 2026, at 8:30 AM ET.
What it means for your money
- Faster price growth tends to keep interest rates higher. Loan and credit card rates may stay elevated while the overall inflation rate sits at 3.4%.
- CPI data set the yearly Social Security cost-of-living adjustment (from CPI-W) and the inflation part of the I bond rate (from CPI-U). They also feed into the IRS's yearly tax bracket changes (from chained CPI).
- A falling core rate suggests underlying price pressure outside food and energy has been easing. The 0.4% monthly rise shows everyday costs still climbed in August.
Drafted by AI (Claude) from the official data and published only after an automatic check that every number in the text matches the figures above. Not investment advice. How we write these