U.S. consumer prices increased more than expected in August as rising rents and health-care costs offset decreases in gasoline prices, pointing to a steady buildup of inflation that could allow the Federal Reserve to raise interest rates this year.
Figures released Friday morning by the U.S Labor Department said the Consumer Price Index rose 0.2% last month after being unchanged in July. In the 12 months through August, the CPI increased 1.1% after advancing 0.8% in July.
Economists had forecast the CPI nudging up 0.1% last month and rising 1% from a year ago.
The so-called core CPI, which removes food and energy costs, rose 0.3% last month, the biggest increase since February, after gaining 0.1% in July.
The core CPI increased 2.3% in the 12 months through August after rising 2.2% in July.
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