U.S. Inflation Rises to 2.9% in August, Driven by Housing Costs

U.S. inflation rose to 2.9% in August, an increase from 2.7% in July, according to the latest Consumer Price Index (CPI) data released today. This uptick marks a concerning trend as the country navigates economic recovery.

The core index, which excludes volatile food and energy prices, increased by 0.3% in August, bringing the 12-month rate to 3.1%. Analysts had anticipated this figure, reflecting ongoing pressures in the economy.

The primary drivers of inflation were housing costs, which surged by 0.4% and account for nearly one-third of the total CPI. Additionally, food prices saw a notable increase of 0.5%, while energy costs rose by 0.7%, with gasoline prices climbing by 1.9% over the same period.

This rise in inflation raises questions about the Federal Reserve"s monetary policy as it seeks to balance growth with price stability. Economists predict that sustained inflation could lead to adjustments in interest rates to curb rising costs. For more on related coverage, see recent developments in global economic conditions.