Inflation Research Brief

High energy costs keep headline inflation sticky. The Consumer Price Index increased 3.4 percent year-over-year and 0.4 percent month-over-month in August. Core CPI, which excludes food and energy, rose 2.4 percent annually and 0.3 percent monthly. Both monthly readings were the highest since May, reflecting renewed energy and other price pressures amid hostilities in the Persian Gulf. Gasoline accounted for more than one-third of the overall monthly increase, while higher airline fares also contributed to core services inflation. Additionally, Brent crude recently surpassed $100 per barrel again, and the national average diesel price exceeded $6 per gallon in September for the first time in history.