The annual inflation rate in the United States held steady at 3.4% in August 2026, unchanged from July and in line with market expectations. Energy costs were a key driver: gasoline prices jumped 27.4% year-on-year, up from 24.6% in July, while fuel oil prices surged 52%, compared with 39.1% previously.
In contrast, price pressures eased in several major categories. Shelter inflation slowed to 3.0% from 3.2%, and food inflation moderated to 2.7% from 3.0%.
On a monthly basis, the Consumer Price Index (CPI) rose 0.4% in August, the largest increase in three months and exactly matching forecasts. Gasoline prices advanced 3.9% on the month and accounted for more than one-third of the overall increase. By contrast, natural gas prices fell 1.1% and electricity prices dipped 0.2%.
Food prices edged up 0.1% month-over-month, while shelter costs rose 0.3%. Additional increases were recorded in communication (2.3%), airline fares (2.7%), education (0.8%), and used cars and trucks (0.4%).
Core CPI, which excludes food and energy, climbed 0.3% on the month—above July’s 0.2% gain and matching expectations of 0.3%. On an annual basis, however, core inflation eased to 2.4%, down from 2.5% in July and marking the lowest rate since March 2021, as anticipated.
