Minneapolis (CNN Business) — US inflation eased in August for the second month in a row but remains stubbornly high, according to data from the Bureau of Labor Statistics released Tuesday.
The Consumer Price Index, which measures a basket of consumer goods and services, showed prices rose 8.3% year-on-year, a slowdown from July’s 8.5% rise and a 9.1% rebound. % of June. The last time the headline CPI rate fell in consecutive months was in the first part of 2020.
In monthly terms, consumer prices rose 0.1% compared to July.
The slower rate of annual rise in prices occurs together with a significant drop in gasoline prices, which have fallen from the record highs reached in June.
The core CPI, which excludes more volatile categories such as food and gasoline, measured 6.3% in August, down from 6.2% in July.
Still, inflation remains painfully high for many Americans, especially those with little wiggle room in their monthly budgets. The annual price increase is a far cry from where it was 18 months ago and the Federal Reserve’s target inflation rate of 2%.
“This is a fight that we cannot and will not walk away from,” Federal Reserve Governor Christopher Waller said last week, underscoring the central bank’s focus on hitting its 2% target.
The Federal Reserve tightened its monetary policy in recent months to help curb the highest inflation in four decades, applying consecutive interest rate hikes of 75 basis points.
Tuesday’s report – especially core CPI – will be reviewed by the Fed ahead of its policy meeting next week.