The Consumer Price Index, which measures the change in prices paid by consumers for goods and services, increased for the second consecutive month in August.

The 0.4% increase on a seasonally adjusted basis follows a 0.2% increase in July, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 2.9% before seasonal adjustment.

Core consumer prices rose in line with market forecasts.

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In August, the monthly increase was driven by a 0.4% increase in the index for shelter. The food index also rose 0.5% month-over-month, and the energy index rose 0.7% as the index for gasoline increased 1.9%.

Indexes that increased over the month include airline fares, used cars and trucks, apparel and new vehicles. The indexes for medical care, recreation and communication were among the few major indexes that decreased in August.

The all items index rose 2.9% for the 12 months ending August, after rising 2.7% over the 12 months ending July. The all items less food and energy index rose 3.1% over the last 12 months. The energy index increased 0.2% for the 12 months ending August. The food index increased 3.2% over the last year.

U.S. Core Inflation Rate Month-Over-Month

Source: tradingeconomics.com