US inflation was slowed down by lower gas costs for a second month in August, but most other prices kept rising.
US media report that consumer prices rose 8.3% from a year earlier and 0.1% from July, but an increase in food and energy costs was worrisome.
The consumer price index increased 0.1% in August after being unchanged in July. Though consumers got some relief from a 10.6% decline in gasoline prices, they saw increase in costs of food, rent, healthcare, electricity and natural gas.
The US government said on Tuesday that core prices leaped 6.3% for the year ending in August and 0.6% from July to August.
Furniture and sports gear, among many other items, also got costlier, suggesting that businesses are still raising prices in response to robust consumer demand, according to the Associated Press report.
The breadth of the price increases dashed hopes, at least for now, that core inflation would moderate.
Some economists say the Fed would raise its benchmark short-term rate, currently in a range of 2.25% to 2.5%, to 4.5% or higher by early next year.
AP also reports that data from companies like Apartment List suggests that rental price inflation is starting to decline. But that data takes time to filter into the government’s measure that tracks all rents.
US President Joe Biden said on Tuesday it would “take more time and resolve to bring inflation down.”
He mentioned the recently passed Inflation Reduction Act aimed at lowering the cost of healthcare, prescription drugs and energy as steps taken by the White House to ease the burden of higher prices on Americans.
Stocks on Wall Street fell after a four-day winning streak. The dollar rallied against some currencies. Meanwhile, US Treasury prices rose.
