US CPI Rises 0.4%, Core Inflation Accelerates Amid Energy Price Shock

The US Consumer Price Index (CPI) rose by 0.4% in August, meeting market expectations and adding pressure on the Federal Reserve to tighten monetary policy at its upcoming meeting.

Energy prices were a major contributor to the increase, with gasoline prices rising by 3.9% during the month, accounting for over one-third of the overall monthly rise in consumer prices.

The core CPI measure, which excludes volatile food and energy prices, rose by 0.3% in August after increasing by 0.2% in July, exceeding economists' expectations.

RSM US's principal and chief economist, Joseph Brusuelas, argued that the combination of persistent core inflation and a renewed energy shock has complicated the Fed's policy outlook.

He pointed out that several separate forces are reinforcing inflationary pressures, including war-induced energy shocks, tariffs, and the draw on commodities and finished goods to support artificial intelligence infrastructure.