According to the U.S. Department of Labor the Consumer Price Index (CPI) -- a measure of inflation -- increased 0.4% in August. Over the last 12 months, the all-items index has increased 3.8% before seasonal adjustment.
The index for all items less food and energy increased 0.2% in August, the same increase as the previous month. Shelter and apparel were the biggest contributors, though the indexes for most of its major components posted increases, including used cars and trucks, medical care, household furnishings and operations, recreation, tobacco, and personal care. The new vehicles index, unchanged for the second month in a row, was an exception, states the release.
The seasonally adjusted increase in the all-items index was broad-based, with continuing increases in the indexes for gasoline, food, shelter, and apparel, states the release. "The gasoline index rose for the 12th time in the last 14 months and led to a 1.2% increase in the energy index, while the food index rose 0.5%, its largest increase since March."
Juli says: This is the highest inflation rate in three years. The Federal Reserve has repeatedly said inflation isn't a significant threat to the economy, but rising prices lower consumers' confidence of an economy recovery.