U.S. CPI up 3.4% in August; gasoline jumps 3.9% and drives monthly gain

U.S. inflation picked up in August, with the Consumer Price Index rising 0.4% on a seasonally adjusted basis, the Bureau of Labor Statistics reported. That followed a 0.1% increase in July. Over the 12 months through August, consumer prices rose 3.4%, matching July's annual pace. Gasoline was the main contributor to the monthly increase, climbing 3.9% and accounting for more than one-third of the overall CPI gain. The broader energy index rose 2.1%. Shelter costs increased 0.3%, while food prices advanced 0.1%. The index for food away from home rose 0.3%. Excluding food and energy, the CPI increased 0.3% in August after a 0.2% rise in July. Communication, lodging away from home, airline fares, education and used vehicles posted gains, while medical care and motor vehicle insurance declined. Core CPI was up 2.4% from a year earlier, easing from 2.5% in July. On a 12-month basis, energy prices rose 16.3%, led by a 27.4% jump in gasoline, while food prices increased 2.7%. The food-at-home index was unchanged in August, though eggs rose 2.9%, dairy prices increased 0.3% and nonalcoholic beverages gained 0.2%. Fruits and vegetables fell 0.4%, while food away from home rose 0.3%. Across other major categories, shelter increased 0.3%, airline fares rose 2.7%, communication advanced 2.3% and used cars and trucks gained 0.4%. Medical care declined 0.2% and motor vehicle insurance fell 0.8%. This is a developing story.