U.S. August CPI Steady at 3.4%; Core Inflation Eases to Lowest Since March 2021

U.S. consumer prices rose 0.4% month over month in August, the biggest gain in three months, while the year-over-year CPI held at 3.4%. Both readings matched market expectations. Gasoline prices climbed 3.9% and contributed more than one-third of the monthly increase. Core CPI, which excludes food and energy, increased 0.3% on the month, in line with forecasts. The annual core rate cooled to 2.4% from 2.5%, marking its lowest level since March 2021.