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Consumer prices continued to rise in the United States last month, likely assuring a historically large interest-rate hike from the Federal Reserve will take place, Bloomberg.com reports.
The consumer price index increased 0.1% from July to August after seeing zero change during the previous month, according to Labor Department data released on Tuesday (September 12).
Prices also climbed 8.3% from the previous year, which was actually a slight deceleration from earlier months, credited to the recent decline of gasoline prices.
Americans still face a high cost of living even with slight relief in gas prices, which are now at a national average of $3.70 per gallon.
The core CPI increased 0.6% from July to August and 6.3% from August 2021 to August 2022, with all measures included exceeding forecasts, including shelter, food and medical care, which were among the largest factors in price growth.
Food prices remained elevated, increasing by 11.4% overall from the previous year, while food at home increased 13.5% and food away from home rose by 8% since August 2021.
Last week, Federal Reserve Chairman Jerome Powell said the central bank was focused on lowering inflation and was optimistic that it could accomplish its goal without incurring "very high social costs," such as higher unemployment.
"The Fed has, and accepts, responsibility for price stability," Powell said at the Cato Institute via NBC News. "We need to act right now — forthrightly, strongly."