The Consumer Price Index rose 0.4% month-over-month in August on a seasonally adjusted basis, the Bureau of Labor Statistics reported on September 11, 2026. That matched the Dow Jones consensus for the headline number but masked a more troubling detail underneath: core CPI, which strips out food and energy, climbed 0.3%, beating expectations of 0.2%.
On a year-over-year basis, headline inflation hit 3.4%, while core inflation registered 2.4%. The core figure technically dipped from July’s 2.5% annual reading, but the monthly overshoot suggests the disinflationary trend the Fed has been banking on might be losing momentum at an inconvenient time.
What drove the numbers
Gasoline did most of the heavy lifting. Energy prices surged 2.1% for the month, with gasoline alone jumping 3.9%. That single category accounted for more than a third of the total headline increase.
Food prices barely budged, rising just 0.1% month-over-month. Shelter costs, the stickiest and most closely watched component, continued their moderate upward grind.
