Inflation and Prices
The Consumer Price Index (CPI) rose 0.3% in August (4.0% at an annual rate), compared with increases of 0.2% (2.0% annualized) in the previous two months. Part of the CPI’s acceleration resulted from a sharp increase in its energy index, which rose 2.7% in August after far more modest monthly increases (0.8% in June and 0.4% in July). The primary reason for energy’s abrupt jump was an outsize increase in the gasoline index, which rose more than 6% (an annualized rate exceeding 100%), the component’s largest monthly increase since February.
Suggested citation: "Inflation and Prices," Federal Reserve Bank of Cleveland, Economic Trends, no. 03-10, pp. 02-03, 10.01.2003.