August Consumer Prices Post Biggest Jump Since 2009

by Christopher Freeburn | September 14, 2012 9:23 am

August Consumer Prices Post Biggest Jump Since 2009

Consumers’ wallets were lighter last month as prices increased, driven by gasoline price hikes[1].

The Labor Department announced on Friday that its Consumer Price Index (CPI) rose 0.6% in August, the largest rise since June 2009, but in line with economists’ expectations, Bloomberg noted.

Most of that increase — 80% — was attributed to a sharp rise in gasoline prices last month. The price of energy gained 5.6% compared to July, driven by a 9% jump in gas prices, and fuel oil which climbed by 4.6%. Food prices edged up just 0.2% from July.

Excluding food and fuel costs, the “core” CPI inched up just 0.1%. That was lower than the 0.2% increase forecast by economists.

Adjusting for price changes, Americans’ hourly earnings dipped 0.7% last month. That, too, was the largest decline since June 2009. Real wages remained flat compared to the same time last year.

Overall, consumer prices have increased 1.7%, and the core CPI has jumped 1.9%, during the year ending in August.

Yesterday, the government released its Producer Price Index (PPI), showing that wholesale prices rose[2] 1.7% last month, higher than the 1.2% gain anticipated by economists. The rise in producer prices was also the biggest jump in three years.

Endnotes:
  1. driven by gasoline price hikes: http://www.bloomberg.com/news/2012-09-14/u-s-consumer-price-index-rose-in-august-by-most-since-2009.html
  2. showing that wholesale prices rose: http://investorplace.com/2012/09/august-producer-prices-rise-more-than-expected/

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