US Inflation Report - August 2023
In August 2023, the US experienced a surge in consumer prices.
Consumer Price Index (CPI)
The Consumer Price Index (CPI) increased by 0.6% over the previous month.
Annual inflation reached 3.7% in August, exceeding July's 3.2%.
A significant rise in energy prices, driven by surging oil prices, was the major contributor to the inflation increase.
Core inflation, excluding food and gas, rose by 4.3% over the previous year
Rent prices continued to surge, with the shelter index increasing by 7.3% over the last year.
Food prices also saw an increase, with the food index rising by 4.3% in August.
US Stock Market Reaction
US stocks dipped in early trading after the inflation data release.
Federal Reserve's Response
The Federal Reserve raised interest rates by 25 basis points, the highest level in two decades, to combat rising inflation.