US consumer prices increased 0.4% month-on-month in August 2026, up from 0.1% in July and matching market expectations. This was the largest monthly gain in three months, driven mainly by a 3.9% jump in gasoline prices as crude oil rallied amid escalating US–Iran tensions.
Shelter costs rose 0.3%, compared with a 0.1% increase in July, while food prices advanced 0.1% for the second consecutive month. Higher prices for communication services, lodging away from home, airline fares, education, and used cars and trucks also added to the overall rise. In contrast, medical care and motor vehicle insurance costs edged lower.
Excluding food and energy, core CPI climbed 0.3% in August, exceeding forecasts for a 0.2% increase.
