August CPI shows sticky core inflation ahead of Fed meeting

August’s CPI points to stickier underlying inflation just ahead of the Federal Reserve’s meeting next week. Core inflation—excluding food and energy—rose 0.3% in August after a 0.2% gain in July. On a year-over-year basis, the core index increased 2.4%, down from 2.5% in July. Services-driven components helped lift the monthly core figure, including communication (+2.3%), airline fares (+2.7%), education (+0.8%), and used vehicles (+0.4%), while medical care (-0.2%) and motor vehicle insurance (-0.8%) fell. Food rose 0.1% month-over-month and energy jumped 2.1%, with gasoline up 27.4%. Shelter rose 3.0% annually and 0.3% monthly, while owners’ equivalent rent climbed 3.1% year-over-year.