WASHINGTON – Consumer prices went up 0.4% in August on a seasonally adjusted basis the Labor Department reported Thursday, following an unchanged 0.5% increase in July. Core consumer prices, excluding food and energy rose 0.2% in August, the same as their July increase.
Economists polled by Thomson Reuters had a median estimate of a 0.2% increase for both the overall and core numbers.
The CPI increase was broad-based, with continuing increases for gasoline, food, shelter and apparel, Labor said.
Energy prices were up 1.2%, less than half of July's 2.8% increase. Gasoline prices also slowed down as well, with a 1.9% August increase following a 4.7% spike in July.
Food prices in August were up 0.5% overall. Food at home repeated its July increase of 0.6% with all the major grocery groups rising except for non-alcoholic beverages.
In the core index, rent rose 0.4%, its largest increase since June 2008. Home ownership, defined as owners equivalent rent, rose 0.2%. It accounts for about a quarter of the core value.
New vehicle prices were unchanged for the second month in a row after a series of increases. Used car and truck prices continued rising, up 0.9% in August.
Apparel prices continued their series of substantial price increases, going up 1.1%.
Overall services prices rose 0.2%.
Year-over-year the CPI was 3.8% higher, but the core rate, which is of more interest to the Federal Reserve was up 2.0%.
Consumer purchasing power eroded last month with real average hourly earnings falling 0.6%. Real average weekly earnings were off 0.8%. They have dropped 2.2% since peaking in October 2010.
