US inflation picks up in August as gas, diesel and home sales slump
August CPI rose 0.4% month-over-month, driven by higher gasoline and diesel prices, while existing-home sales fell to their slowest pace in over a year.
Inflation in the United States accelerated in August, with the CPI rising 0.4% from July and remaining at a 3.4% year-over-year pace, according to the Labor Department. The uptick was largely fueled by a spike in gasoline prices and diesel hitting a record $6.05 per gallon after renewed conflict in the Middle East disrupted fuel supplies. Producer-price data also showed a 0.4% monthly increase, reflecting higher oil and gas costs.
On the housing front, the National Association of Realtors reported a 2% decline in existing-home sales from July, the slowest annual rate in more than a year, as mortgage rates rose to 6.76% for a 30-year fixed loan. Freddie Mac noted that 15-year mortgage rates also climbed to 6.09%. Unemployment claims slipped slightly to 206,000, staying within historically low levels. Stock markets responded positively after oil prices eased, with the S&P 500 breaking a four-day losing streak.
Why it matters
Rising inflation and higher mortgage rates pressure household budgets and could influence voter sentiment ahead of the midterms.
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