CPI rises 8.3% in August, consumers still squeezed

Inflation data released on Tuesday revealed that prices rose slightly in August, worsening the cost woes for U.S. households as the Federal Reserve

On a monthly basis, the consumer price index rose 0.1% in August, inching upward from the flat month-to-month movement in July, according to the Bureau

The consumer price index, or CPI, rose 8.3% over the past year in August, a slight slowdown from 8.5% in July, according to the bureau.

The CPI continued to show one major bright spot: gasoline prices. The cost of gas continued to fall significantly, dropping 10.6% in August.

Prices rose broadly outside of the energy sector. Food prices rose 0.8% on a monthly basis, slowing from their monthly increase in July but remaining highly elevated.

Measures of the consumer prices for shelter, new vehicles and apparel all rose at a faster rate in August than they had over the month prior.

The data arrives little more than a week before Federal Reserve officials meet to determine what investors expect to be another borrowing cost increase aimed at fighting inflation.

The Fed has instituted a series of aggressive interest rate hikes in recent months as it tries to slash price increases by slowing the economy and choking off demand.

The rate increases appear to have slowed key sectors of the economy, sending mortgage rates higher and slowing the construction of new homes, for instance.

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