August CPI: 3.4% headline, 2.4% core

The Consumer Price Index rose 0.4% in August on a seasonally adjusted basis, and 3.4% over the year, the same annual rate as July. The BLS release, published September 11, pinned the source. Gasoline rose 3.9% on the month and “accounted for over one third of the monthly all items increase.” Over the year, gasoline is up 27.4% and the energy index 16.3%.

Underneath, the picture is the reverse. Prices excluding food and energy rose 0.3% on the month but just 2.4% over the year. That is the lowest core rate since March 2021. Shelter rose 0.3% after two softer months, and food rose 0.1%.

Where the 3.4% comes from

CPI · 12-month change by component, August 2026

Gasoline27.4%

Energy16.3%

Headline CPI3.4%

Food2.7%

Core (ex food & energy)2.4%

Source · BLS CPI release, August 2026 (Sept 11)

A 2.4% core and a rate hike in the same week is the committee telling you which number it thinks your customers feel.

What this means for your bank

Stress household-credit segments on fuel costs instead of the core. A 27% rise in gasoline over the year hits commuting borrowers first.
With wages up 3.1% against 3.4% prices, watch early-stage consumer delinquency and overdraft usage for the squeeze.
Present both the headline and the core in the ALCO pack. The Fed just showed which one sets policy right now.

From Zovos AI

Zovos maps the macro series behind each of your credit and deposit assumptions, so a CPI release updates the right model inputs automatically.

Sources

Consumer Price Index, August 2026bls.gov ↗

This is for information only and is not legal or investment advice. Verify all figures against the linked primary sources before acting.

Where the 3.4% comes from

The Fed hikes unanimously for the first time since 2023

Payrolls rebound to 162K, and July is no longer negative

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