United States Inflation Rate1914-2021 Data | 2022-2023 Forecast | Calendar

The annual inflation rate in the US eased to 5.3% in August from a 13-year high of 5.4% reported in June and July, matching market expectations. A slowdown was seen in cost of used cars and trucks (31.9% percent vs 41.7% in July) and transportation services (4.6% vs 6.4%) and inflation was steady for shelter (2.8%) and apparel (4.2%). On the other hand, faster price increases were seen for food (3.7% vs 3.4%), namely food at home (3% vs 2.6%) and food away from home (4.7% vs 4.6%); new vehicles (7.6% vs 6.4%); energy (25% vs 23.8%); and medical care services (1% vs 0.8%). The monthly rate eased to 0.3% from 0.5% in July, better than forecasts of 0.4%. Prices of airline fares, used cars and trucks, and motor vehicle insurance all declined over the month while increases were seen in cost of gasoline, household furnishings and operations, food, and shelter.

The annual inflation rate in the US likely eased to 5.3% in August from a 13-year high of 5.4% reported in June and July. The monthly rate is seen edging down to 0.4% from 0.5%. Meanwhile, the core inflation which excludes food and energy, is expected to remain stable at 0.3% compared to the previous month and drop slightly to 4.2% compared to the same month a year earlier. Inflation surged this year reflecting the low base effect caused by the coronavirus crisis, the re-opening of the economy, and continued supply constraints. Investors are keeping a close eye on the CPI release as it could provide more clarity on when the Federal Reserve will start cutting stimulus and a stronger-than-expected reading could force the Fed to start tapering early.

The US consumer price inflation rate stood at 5.4 percent in July 2021, unchanged from the previous month's 13-year high and slightly above market expectations of 5.3 percent, reflecting the low base effect caused by the coronavirus crisis, the re-opening of the economy and continued supply constraints. Main upward pressure came from food (3.4 percent vs 2.4 percent), led by sharp increases in food at home (2.6 percent vs 0.9 percent) and food away from home (4.6 percent vs 4.2 percent); new vehicles (6.4 percent vs 5.3 percent); and shelter (2.8 percent vs 2.6 percent). Meanwhile, inflation moderated for energy (23.8 percent vs 24.5 percent); used cars and trucks (41.7 percent vs 45.2 percent); apparel (4.2 percent vs 4.9 percent); transportation services (6.4 percent vs 10.4 percent); and medical care services (0.8 percent vs 1.0 percent). On a monthly basis, consumer prices rose 0.5 percent in July, the least since February's 0.4 percent gain.

Annual inflation rate in the US accelerated to 5.4% in June of 2021 from 5% in May, hitting a fresh high since August of 2008, and well above forecasts of 4.9%. Biggest price increases were recorded for used cars and trucks (45.2%), gasoline (45.1%), fuel oil (44.5), utility gas service (15.6%) and transportation services (10.4%). Shelter costs were up 2.6% and food 2.4%. Inflation has been on the rise this year amid low base effects from 2020 and as the economic recovery picks up, business restrictions ease and demand surges amid widespread vaccination and federal support. Meanwhile, high commodity prices, supply constraints and higher wages as companies grapple with a labour shortage continue to weigh on the CPI.