Prices continue to rise with food and energy leading the way. Do we need to start worrying about inflation?
The Consumer Price Index, a commonly used measure of inflation, rose to 3.8 percent in August, a monthly increase of 0.4 percent, the Bureau of Labor Statistics reported today.
Food prices showed their largest monthly increase since March, rising 0.5 percent from July to August. The gasoline index rose for the 12thtime in the last 14 months, leading to a 1.2 percent monthly increase in the energy index. In the last 12 months, the energy prices have increased 18.4 percent and food prices have grown by 4.6 percent.
Prices, excluding food and energy, rose 0.2 percent in August with shelter and apparel making the biggest contributions to the hike. Year-over-year core prices have gone up by 2 percent.