U.S. consumer prices rose more than expected on the month in August, with CPI up 0.4% mom versus forecasts of 0.3% mom. Core CPI rose 0.3% mom, matching expectations. Shelter costs climbed 0.4% mom and were the largest contributor to the monthly increase, while food prices rose 0.5% mom and energy gained 0.7% mom.
On a year-over-year basis, headline CPI accelerated to 2.9% from 2.7% in July, in line with forecasts. Core inflation held steady at 3.1%, also as expected. The data show underlying price pressures remain stable even as headline measures edge higher. Food inflation rose 3.2% over the past year, while energy prices were up a modest 0.2%. Overall, the report points to steady but not accelerating inflation.
