U.S. August CPI Report Shows Firm Consumer Price Growth, Bolstering Fed Rate Hike Expectations

The U.S. Consumer Price Index (CPI) for August 2026 indicated firm consumer price growth, with the headline CPI rising 0.4% month-over-month and 3.4% year-over-year, aligning with economists' estimates. Core CPI, which excludes volatile food and energy prices, increased 0.3% month-over-month and 2.4% year-over-year, with some reports suggesting it was slightly higher than anticipated. The energy index saw a 2.1% increase in August, while the shelter index rose 0.3%. This inflation data is reinforcing expectations for a Federal Reserve interest rate hike in the upcoming week.