The U.S. Bureau of Labor Statistics, in a Wednesday press release, announced a notable rise in the annual inflation rate under President Joe Biden’s administration.
“The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6 percent in August on a seasonally adjusted basis,” after a milder increase of “0.2 percent in July,” according to the bureau.
Significantly, “over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.”
The rising inflation paints a concerning picture for the U.S. economy, with some areas seeing more drastic price increases than others.
The Bureau pinpointed gasoline as a leading contributor, which “accounted for over half of the increase” in August.
In a similar vein, the energy index saw a sharp increase of “5.6 percent in August,” emphasizing the broader economic implications of fluctuating energy costs.
Housing, a perennial concern for many Americans, continued its upward trend.
The report highlighted the “shelter index, which rose for the 40th consecutive month.”
Also, “the index for all items less food and energy rose 0.3 percent in August,” showcasing that this isn’t solely an issue of external factors but runs deeper into the core items and services.
Food prices, both at home and away, have risen as well.
The report showed that “the food index increased 0.2 percent in August,” consistent with its growth from the prior month.
This rise has been felt differently across various food categories, with the “index for cereals and bakery products [rising] 6.0 percent over the 12 months ending in August.”
Yet, it’s not just the daily essentials that are feeling the inflationary pressure.
Recreational and personal care items are also rising.
“The index for motor vehicle insurance, which increased 2.4 percent after rising 2.0 percent the preceding month.”
The figures for “recreation (+3.5 percent), personal care (+5.8 percent), and new vehicles (+2.9 percent)” over the past year underscore a broad spectrum of inflationary pressures.
While there are sectors, like used cars and trucks, which saw a decline, the overarching theme from the Bureau’s report paints a worrisome economic trajectory for the U.S.
Wrapping up, the release pointed out: “The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.7 percent over the last 12 months to an index level of 307.026 (1982-84=100).”
