The Consumer Price Index (CPI) rose 3.7% in August, according to data released by the Bureau of Labor Statistics (BLS). This is a 0.5% increase compared to July (when it rose by 3.2%) and is the second consecutive month it has gone up (after 12 months of decline).
The Bureau report showed that the gasoline index was the largest contributor, accounting for more than half of the increase. Similarly, it explained that the food index increased by 0.2% in August, as it did in July.
Meanwhile, core inflation, a measure of cost increases that removes energy and food prices because of their volatility, rose 4.3%.
The data comes after a survey conducted by the Federal Reserve of New York was published. It revealed that 41% of American households said they were worse off financially compared to the previous year.
The survey — called Consumer Expectations — also found that nearly 30 percent of respondents expect to be worse off next year. Likewise, its revenue growth was negative, falling 0.3% in August (to 2.9%) compared to July of this year. This is the lowest level perceived since July 2021:
Households' perceptions about their current financial situation and expectations for the future also deteriorated.