Inflation rose faster than expected in August, squeezing U.S. households in the form of higher prices for everyday necessities like groceries, rent and electricity.
"The August CPI report indicates that inflation is still roaring hot," said Jason Reed, an assistant chair and professor of finance at the University of Notre Dame's Mendoza College of Business. "Economists were hoping for a cool down during August and they saw that with significant declines in the price of gasoline and energy, but food and healthcare prices remained high."
The cost of groceries, meanwhile, climbed 0.7%, putting the 12-month increase at 13.5%, the highest since May 1979. Americans are paying more at the grocery store for a number of items that have climbed considerably in price during the one-month period between July and August.That includes items like hot dogs , potatoes , eggs , butter , ham , bread and ice cream .
Rent costs jumped 0.8% over the month and 6.7% on an annual basis. Rising rents are a concerning development because higher housing costs most directly and acutely affect household budgets. Another data point that measures how much homeowners would pay in equivalent rent if they had not bought their home, climbed 0.7% in August from the previous month.
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