Inflation Continued To Climb In August Amid Weakening Job Market

Consumer prices in the United States rose in August, as reported by the Bureau of Labor Statistics on Thursday (September 11). The consumer price index (CPI), a key measure of inflation, increased by 0.4% last month, following a 0.2% rise in July, surpassing expectations of a 0.3% increase. On an annual basis, the CPI climbed by 2.9%, up from 2.7% in July, marking the highest reading since January.

The rise in inflation is largely attributed to higher prices for essentials like food and electricity. Tariffs on imported goods, such as clothing and household furniture, have also contributed to the increase. Core commodities, excluding food and energy, rose by 1.5% in August, the fastest pace since May 2023. Economists point to tariff policies from President Donald Trump's administration as a significant factor in the rising costs of goods.

Food prices have seen notable increases, with grocery prices rising by 2.7% in August compared to a year earlier. This rise is attributed to tariffs on imported foods like coffee, fruits, and vegetables. Beef prices have also surged due to supply constraints and steady demand.

Electricity prices have increased by more than 6% since August 2024, driven by the growing demand from data centers. Travel-related costs have also risen, with airline fares increasing by nearly 6% from July to August, and lodging prices rising by almost 3%.

Economists warn that inflation is likely to accelerate further in the coming months, with ongoing tariff impacts and strong consumer demand contributing to price pressures. The Supreme Court is set to review the legality of President Trump's tariff measures in November, which could impact future inflation trends.