The Labor Department said in a report Tuesday that a gauge that monitors consumer prices in the United States rose slightly in August, indicating that growing inflation may be leveling out.
From July to August, the Consumer Price Index climbed by 0.3 percent, and by 5.3 percent in August 2020. The majority of analysts had predicted a higher growth.
From June to July, consumer prices increased by 0.5 percent.
Prices rose by 0.1 percent when food and energy were excluded, the smallest increase in six months.
According to some experts, Tuesday’s numbers suggest that US inflation may be slowing after climbing for several months.
According to the September Bank of America Fund Manager Survey, many analysts predict inflation will begin to drop over the next year.
“Along with the indexes for household operations and shelter, the indexes for new vehicles, recreation and medical care also rose in August,” the Labor Department said in a statement. “The indexes for airline fares, used cars and trucks, and motor vehicle insurance all declined over the month.”
Gasoline, often the main driver of the total index, increased by 2.8% and food rose by 0.4%.
The Labor Department reported this week that producer prices in the United States increased by 0.7 percent in August. It was up 8.3 percent year over year, the highest annual growth since 2010.