August US Consumer Prices Rise More Than Expected, Year-Over-Year Rate Accelerates

08:51 AM EDT, 09/11/2025 (MT Newswires) -- The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.4% in August, above expectations for a 0.3% increase as of 7:30 am ET and following a 0.2% gain in July, according to data released Tuesday by the Bureau of Labor Statistics.

Core CPI, which excludes food and energy prices, rose by 0.3%, as expected and the same as in the previous month.

Food prices increased by 0.5%, while energy prices were up 0.7%. Gasoline prices were up 1.9%.

Owners' equivalent rents rose by 0.4%, while regular rents rose by 0.3%. There were also notable gains in apparel, new vehicles, used vehicles and transportation services, particularly airfares.

CPI excluding food, energy and shelter slowed to 0.3% gain after a 0.4% increase in the previous month.

The year-over-year rates for overall CPI accelerated to 2.9% from 2.7% in the previous month, the strongest pace since January 2025, while the core CPI remained at 3.1%. The year-over-year rate for CPI excluding food, shelter and energy services increased to 2.7% from 2.6% in the previous month.

The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing.

The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Federal Reserve as a sign of underlying inflation pressures.

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