Consumer prices rose 0.4% in August and 3.4% from a year earlier, the Bureau of Labor Statistics said Friday. Energy did most of the work: energy prices were up 16.3% from a year ago and gasoline 27.4%.
Core inflation, which excludes food and energy, rose 0.3% on the month, above the 0.2% economists expected, and 2.4% on the year. Shelter rose 0.3% in August and 3.0% from a year earlier.
The report firmed up expectations for a Fed hike at next week’s meeting. Futures priced about a 90% chance of a quarter-point increase.
Europe has already moved. The European Central Bank raised rates on Thursday for the second time this year, lifting its deposit rate to 2.50%.
Sources
- BLS, Consumer Price Index, August 2026
- KuCoin News, core CPI beats forecasts
- LPL Research, Weekly Market Performance, Sep 11, 2026
- Central Banking, ECB September decision
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