Core Consumer Inflation Accelerates, Pushed Up By Soaring Housing Prices

A key measure of consumer prices rose by more than expected in August, indicating an acceleration of inflation from a month earlier.

The Department of Labor said that core consumer prices, a metric that excludes food and energy prices, rose by 0.3 percent last month. That’s an acceleration from the July increase of 0.2 percent and above the consensus forecast of 0.2 percent.

Compared with a year ago, core inflation is up 3.2 percent.

A big driver of the increase in August was a 0.5 rise in housing prices. Compared with a year ago, the shelter index is up 5.2 percent. Other categories that saw significant price increases include airfares, car insurance, education, and apparel.

The all-in index of consumer prices rose 0.2 percent for the month, matching the prior month’s reading and expectations. For the year, prices are up 2.5 percent.