US consumer inflation annually rises 2.5% in August, slowest increase since February 2021

By Ovunc Kutlu

ISTANBUL (AA) - Consumer inflation in the US annually rose 2.5% in August, marking the slowest annual increase since February 2021, according to data released Wednesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in line with market estimates, and showed a significant slowdown from a year-on-year increase of 2.9% recorded in July.

The figure is also a sharp decline from the 9.1% annual gain recorded in July 2022, which was the highest since November 1981.

On a monthly basis, CPI showed an increase of 0.2%, and came in line with market expectations, following also a 0.2% gain in July.

"The index for shelter rose 0.5 percent in August and was the main factor in the all items increase," the Labor Department's Bureau of Labor Statistics said in a statement.

"The food index increased 0.1 percent in August, after rising 0.2 percent in July," it added. "The energy index fell 0.8 percent over the month, after being unchanged the preceding month."

Core CPI, which excludes volatile food and energy prices, gained just 0.3% in August from the previous month, coming in higher than market estimates of 0.2%, but slightly gaining pace from the 0.2% increase in July.

Annually, core CPI climbed 3.2% in August, coming in line with expectations, and following a 3.2% year-on-year gain recorded in July.