Inflation’s steady march lower continued Wednesday, with the Bureau of Labor Statistics reporting that consumer price growth slowed to 2.5% in August, the lowest measure since 2021.
Estimates were for an annual increase of 2.6%, down from 2.9% in July. Food price growth slowed to 2.1%, its lowest level since at least May 2021; while gasoline prices declined more than 10% year on year. According to AAA, the average cost of a gallon of gasoline is now $3.25, compared with $3.83 a year ago.
Though price growth is now within range of the Federal Reserve’s official 2% target, the sting of rapid price increases over the past four years lingers for many consumers. And the latest report showed ‘core’ inflation, which excludes volatile food and energy prices, unexpectedly climbed 0.3% month on month thanks to rising housing costs.