Data released by the Bureau of Labor Statistics on Wednesday morning revealed that consumer prices rose in August. The Consumer Price Index (CPI) rose 0.6% on a month-over-month basis and by 3.7% compared to August last year. These increases were largely driven by a surge in energy prices.
Core prices, which exclude volatile food and gas costs, rose by 4.3% in August compared to the previous year, marking a slowdown from the 4.7% annual rise experienced in July. On a monthly basis, core prices rose 0.3%, outpacing July’s 0.2% rise.
Oil prices also embarked on a rampant rise, with U.S. benchmark West Texas Intermediate jumping to a price just below $89 per barrel. Brent crude futures were priced at over $92 per barrel; its highest level since November 2022. Like consumer prices, oil was also driven upwards by the rise in energy costs.