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U.S. Consumer Price Index Rises 0.4% in August as Annual Inflation Reaches 3.4%
Just the facts
The United States Consumer Price Index rose 0.4% in August 2026, bringing the annual rate of inflation to 3.4% according to data released by the Bureau of Labor Statistics. The annual figure slightly exceeded economic forecasts, which had anticipated an annual inflation rate of 3.3%. Rising energy and fuel prices contributed significantly to the monthly gain, with national average diesel prices reaching $6.06 per gallon and gasoline averaging $4.30 per gallon. Core inflation, which excludes volatile food and energy components, also posted higher-than-expected gains. The inflation report arrives ahead of the Federal Reserve's scheduled policy meeting, where central bank officials will determine whether to adjust benchmark interest rates.
Why this is news
The U.S. Bureau of Labor Statistics released its August Consumer Price Index report showing that consumer prices increased by 0.4% from the previous month. The annual inflation rate held at 3.4%, coming in slightly higher than economic forecasts as elevated energy and gasoline prices pushed costs upward.
Sources
This summary is compiled strictly from the original reporting below.