Inflation remained stubbornly high last month, fueled in part by rising gasoline prices. The cost of living in August was up 3.4% from a year ago.
Prices rose four-tenths of a percent between July and August, with higher gasoline prices accounting for more than a third of that jump. Energy prices also continue to climb in early September, with the average price of diesel fuel now topping $6.00 a gallon for the first time ever. The cost of airline tickets and used cars was also up last month.
Loading...
Stripping out volatile energy and food prices, so-called "core" inflation dipped to 2.4% in August, a slightly smaller annual increase than the previous month.
Friday's inflation report is the last big piece of economic news before next week's Federal Reserve meeting, where policymakers will have to decide whether to raise interest rates.
An NPR editor adapted this audio report by Scott Horsley.
Copyright 2026 NPR
