Shelter and food costs led inflation higher in August

Contrary to the Administration’s promises that prices will come down for everyday American’s the U.S. Bureau of Labor Statistics August CPI report showed that inflation continues to tick up, increasing 0.4 percent month over month and 2.9 percent year over year.

The two core basic need categories, shelter and food, were among the most significant factors in the monthly increase of all items.

The index for shelter rose 0.4 percent in August, while the food index increased 0.5 percent over the month as the food at home index rose 0.6 percent and the food away from home index increased 0.3 percent.

Additionally, energy – another basic need for heat, electricity, and gasoline for transportation also rose 0.7 percent in August, as the index for gasoline increased 1.9 percent over the month.

Although the Administration often touts the decreasing price of food – that claim is just false.

The food index increased 3.2 percent over the last year, and rose 0.5 percent in August, after being unchanged in July.

Most concerning is that the food at home index increased 0.6 percent over the month, and all six major grocery store food group indexes increased in August.

The index for fruits and vegetables rose 1.6 percent over the month as the index for tomatoes increased 4.5 percent and the index for apples rose 3.5 percent. The meats, poultry, fish, and eggs index increased 1.0 percent in August, with the beef index rising 2.7 percent. The index for non-alcoholic beverages increased 0.6 percent, and the index for other food at home increased 0.1 percent. Both the dairy and related products index and the cereals and bakery products index also rose 0.1 percent in August.

The index for food at home rose 2.7 percent over the 12 months ending in August. The meats, poultry, fish, and eggs index rose 5.6 percent over the last 12 months. The index for nonalcoholic beverages increased 4.6 percent over the same period, and the index for other food at home rose 1.5 percent. The fruits and vegetables index increased 1.9 percent over the 12 months ending in August. The index for cereals and bakery products rose 1.1 percent, and the index for dairy and related products increased 1.3 percent over the same period.

The shelter index increased 0.4 percent over the month. The index for owners’ equivalent rent rose 0.4 percent in August, and the index for rent increased 0.3 percent.

Ultimately, under the Trump Administration, everyday life is getting more expensive for Americans.