Durrant Pate/Contributor

The U.S. Bureau of Labor Statistics (BLS) is reporting today that energy prices have driven up inflation for another months in August 2026 with the Consumer Price Index for All Urban Consumers (CPI-U) rising by 0.4% on a seasonally adjusted basis.

This comes after a 0.1% increase in July. Over the past 12 months, the all items index rose 3.4% before seasonal adjustment. As explained earlier, energy prices were the primary driver of the monthly increase. The energy index rose 2.1% in August after falling 1.5% in July, with gasoline prices increasing 3.9% and accounting for more than one-third of the rise in the all items index. 

Shelter costs also increased 0.3%, contributing to overall inflationary pressures. Meanwhile, the food index rose 0.1%, as food away from home increased 0.3% while food at home was unchanged. In contrast, electricity prices declined 0.2% and natural gas prices fell 1.1% during the month.

Movements in the all items index

Excluding food and energy, the all items index rose 0.3% in August after increasing 0.2% in July. Major contributors to the increase included communication services, lodging away from home, airline fares, education, used cars and trucks, new vehicles, personal care, and household furnishings and operations. 

Offsetting some of these gains, the medical care index declined 0.2%, while motor vehicle insurance decreased 0.8%. Apparel and recreation prices were unchanged over the month.

For the 12 months ending in August, the all items index rose 3.4%, unchanged from the increase recorded through July. The all items less food and energy index increased 2.4% over the year, slightly lower than the 2.5% increase through July. 

The energy index advanced 16.3% over the past 12 months, driven largely by a 27.4% increase in gasoline prices, while the food index rose 2.7% over the same period. Shelter prices increased 3.0% year-over-year, while notable gains were also recorded in airline fares, recreation, medical care, and personal care.