Inflation rises again for second month in a row after year of cooling
Gasoline prices accounted for "over half of the increase" in prices from last month, officials said.
Inflation rose two months in a row, hitting 3.7% in August compared to the same time last year according to Wednesday's Consumer Price Index Report, even though the inflation rate had been declining for a year before July.
Inflation had cooled for 12 straight months to reach 3% in June, which was significantly lower than June 2022's four-decade high of 9.1%. By July 2023, inflation started ticking up again, hitting 3.2%.
The CPI report, which tracks inflation by measuring the prices that consumers pay over time, stated that gasoline prices accounted for "over half of the increase" in prices from last month, even though it is down 3.3% from August 2022.
The latest inflation numbers come as the Federal Reserve Bank has been raising interest rates to fight rising prices.