In August 2023, the Consumer Price Index for All Urban Consumers (CPI-U) experienced a significant surge of 0.6%, driven by a combination of soaring gasoline prices and escalating housing costs.
Gasoline Prices Skyrocket: Gasoline prices (all types) witnessed an 10.6% increase, making them the largest contributor to the monthly all items index rise. This surge was especially significant, as it followed a decline in previous months, causing consumers to feel the pinch at the pump.
Housing Costs Continue to Rise: The shelter index maintained its upward trajectory, rising for the 40th consecutive month. This contributed to a steady increase in the cost of living, as rent, owners' equivalent rent, and utility (piped) gas service also saw notable price hikes.
Food Prices Remain Steady: The food index increased by 0.2% in August, aligning with the 0.2% increase in July. While food at home saw a modest 0.2% increase, the index for food away from home rose by 0.3%.
Energy Index Rebounds: The energy index bounced back with a 5.6% increase in August, driven by all major energy component indexes. This recovery came after a period of volatility, affecting consumers' monthly expenses.
Core CPI Shows Resilience: The index for all items less food and energy rose by 0.3% in August, highlighting the resilience of core CPI. Items such as motor vehicle insurance, medical care, and personal care all saw increases during this period.
Over the 12 months ending in August 2023, the all items index increased by 3.7%, surpassing the 3.2% increase for the 12 months ending in July. The all items less food and energy index rose by 4.3% during the same period, indicating the broader impact of rising costs on consumers' budgets.
