The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.

The index for gasoline was the largest contributor to the monthly all items increase, accounting for over
half of the increase. Also contributing to the August monthly increase was continued advancement in the shelter index, which rose for the 40th consecutive month. The energy index rose 5.6 percent in August as all the major energy component indexes increased. The food index increased 0.2 percent in August, as it did in July. The index for food at home increased 0.2 percent over the month while the index for food away from home rose 0.3 percent in August.

The index for all items less food and energy rose 0.3 percent in August, following a 0.2-percent increase in July. Indexes which increased in August include rent, owners’ equivalent rent, motor vehicle
insurance, medical care, and personal care. The indexes for lodging away from home, used cars and
trucks, and recreation were among those that decreased over the month.

The all items index increased 3.7 percent for the 12 months ending August, a larger increase than the
3.2-percent increase for the 12 months ending in July. The all items less food and energy index rose 4.3 percent over the last 12 months. The energy index decreased 3.6 percent for the 12 months ending
August, and the food index increased 4.3 percent over the last year.

[This is not good news for consumers or for the White House. Pay close attention to the core CPI, which is now going back up to levels that make a 2% target impossible to hit on this trajectory even without a new hike in gas prices. The top-line month-on-month CPI hasn’t been this high in at least a year. Practically all categories of goods and services increased in August with the exception of used vehicles. Transportation services increased 2% in a month, but overall energy prices shot up 5.6% in August alone. I’ll have more reaction in Headlines as the day proceeds. — Ed]