Despite expectations that headline inflation would show a slight drop in August, the consumer price index went up 0.1 percent in August, and prices were up 8.3 percent from a year ago.
After a zero percent month-over-month change in July, which was touted by the Biden administration as a sign that inflation was moderating, many economists were expecting the slowdownto turn into an actual pullback. However, the indexes for shelter, food, and medical care saw price increases, which were largely offset by falling gas prices.
Food prices went up 0.8 percent. Shelter was up 0.7 percent, and medical care index was up 0.7, while gas fell by a whopping 10.6 percent. Energy overall fell 5 percent, even as electricity and natural gas ticked upward.
One good sign: The increase in food prices was the smallest monthly increase this year.
Core inflation, which cuts out food and energy, jumped 0.6 percent. That's double the rate from last month, showing that even without the most volatile categories, inflation is rising.
Used cars actually saw a 0.1 percent decline, while new cars were up 0.8 percent.
Overall, the report was an extremely mixed bag, and economists don't expect it to sway the Federal Reserve from moving forward with a large rate hike next week.