Inflation in the United States eased again in August, marking a second consecutive month of retreat and shaping the annual rate at 8.3 percent. That figure is two-tenths lower than July, based on data released this Tuesday by the Bureau of Labor Statistics.
Federal price gains compared with the prior month rose modestly by one tenth after a period of stability in July.
Food prices continued to rise, climbing 0.8 percent in August, while overall energy costs fell by five percent during the month.
Core inflation, which excludes the often volatile food and energy categories, advanced 0.6 percent in August, lifting the annual rate to 6.3 percent, up four-tenths from July.
This second decline in the inflation rate comes after a peak in June and offers a breath of relief for the economy. By the end of July, many observers argued the economy had entered a technical recession, as GDP fell for two consecutive quarters.
Nevertheless, the official stance from the U.S. government did not declare a recession, noting the economy’s resilience, particularly in the labor market. The unemployment rate stood at 3.7 percent in August, a rise of two-tenths from July, signaling ongoing job market strength even as inflation remains a top concern.
Inflation remains the dominant focus for the Biden administration and for the Federal Reserve. Officials signaled ongoing vigilance and readiness to adjust policy if price pressures persist. In late July, the Federal Reserve signaled a continuation of higher interest rates, with the federal funds target range remaining in the higher bracket.
Looking ahead, September’s data will be closely watched for hints about whether the inflation trajectory continues to cool. Observers note that any policy response will hinge on forthcoming economic indicators, including wage trends, consumer demand, and the health of the labor market.