Higher gas, housing costs lift US consumer prices 0.4 pct.
WASHINGTON — Higher gas and housing costs boosted U.S. consumer prices 0.4 per cent in August, the most in seven months. The increase suggests inflation could be picking up, but the figures were likely distorted by Hurricane Harvey.
Consumer prices climbed 1.9 per cent last month compared with a year earlier, the Labor Department said Thursday, up from an annual gain of 1.7 per cent in August and the second straight increase. Excluding volatile energy and food costs, prices rose 0.2 per cent in August and 1.7 per cent from a year earlier.
The pickup will likely assuage Federal Reserve policy makers that prices are stabilizing, a sign of a healthy economy. Fed officials may be more likely to raise short-term interest rates as a result in the coming months, economists said.
“August’s strong gain should help alleviate concerns among Fed members that the slowdown in inflation that began in the spring is set to continue,” said Sarah House, an economist at Wells Fargo.