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(12 Sep 2025, 08:10)

Economic Buzz: US consumer prices climb 0.4% in August


Following yesterday's report showing an unexpected dip by producer prices, the Labor Department released a separate report on Thursday showing U.S. consumer prices rose by slightly more than expected in the month of August.

The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.2 percent in July.

The report also said the annual rate of consumer price growth accelerated to 2.9 percent in August from 2.7 percent in July.

The slightly bigger than expected monthly increase by consumer prices partly reflected a continued advanced by shelter costs, which rose by 0.4 percent in August after edging up by 0.2 percent in July.

Energy prices also grew by 0.7 percent during the month amid a surge by prices for gasoline, while food prices climbed by 0.5 percent.

The Labor Department said core consumer prices, which exclude food and energy prices, rose by 0.3 percent in August, matching the increase seen in July as well as expectations.

The annual rate of core consumer price growth in August was unchanged from the previous month at 3.1 percent.

The monthly increase by core consumer prices reflected the higher prices for shelter as well as higher prices for airline fares, used cars and trucks, apparel, and new vehicles.

Meanwhile, the report said prices for medical care, recreation, and communication were among the few that decreased in August.

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