Household budgets took another hit in August as annual inflation rose for the second month in a row, new figures show.
The annual interest rate now hovers at 3.7 percent, after falling to a low of 3 percent in June. And it remains well above the Fed’s target of 2 percent.
But analysts say the spike is due to select items like gas and shelter, which are notoriously volatile, while the majority of prices remained stable.
DailyMail.com analyzed data from the U.S. Bureau of Labor Statistics to reveal where costs are rising and falling the fastest.
While the cost of fueling and insuring a car skyrocketed, price tags for used vehicles fell 1.2 percent.
Between July and August, gas costs rose by a significant 10.6 percent, seasonally adjusted. While the cost of refueling and insuring a car rose last month, the cost of a second-hand car fell
And gasoline prices rose 10.6 percent between June and July – the biggest increase in more than a year. Experts said gas was one of the biggest drivers of inflation in August, although costs remained lower than last year.
Domestic and international commercial airline fares, which had fallen since March, rose 4.9 percent.
Car insurance prices rose again by 4.9 percent between June and July, the twentieth monthly increase in a row.
Shelter care – including rent and the costs of maintaining a home – rose by a relatively small 0.3 percent, the 40th consecutive monthly increase.
While food as a whole increased by 0.2 percent between July and August, dairy products and bread were 0.4 and 0.8 percent cheaper respectively. However, meat costs increased by 1 percent.
A rebound in crude oil prices is believed to be one of the causes, as well as refinery problems that arose earlier in the summer. At the same time, gasoline demand returned to levels well above last summer, leaving national inventories largely below seasonal norms.
The national average for a gallon of gasoline is $3,811, which exceeds fuel costs by three cents compared to this time last year
Televisions stood out as electronic devices fell the most in price, with a decline of 2.7 percent.
Between August 2022 and August 2023, the total cost of consumer goods was 3.7 percent higher.
Although gas costs were a major source of inflation between July and August, they have fallen by about 3.3 percent since last year. Airline fares have also fallen year-over-year due to pandemic highs.
Bread, housing and lodging are all more expensive than last year.
The latest high gas prices have been driven in part by oil supply cuts by Russia and Saudi Arabia and warm weather in the U.S., which has hurt production at many refineries.
In July, Russia pledged to cut 500,000 barrels per day of its exports.
But prices are still well below the peak average of $5 in June 2022 – about four months after Russia’s invasion of Ukraine. This time last summer, the national average was $4.28 per gallon.
President Joe Biden (pictured Monday) said in a statement Wednesday morning after the inflation data release that the future health of the U.S. economy was promising
Since last year, gas prices have fallen by approximately 3.3 percent. Bread, housing and lodging are all more expensive than last year
And experts predict that volatile energy prices will not curb a slowdown in inflation in the coming months.
“The pass-through effect of energy prices on core inflation is small compared to the downturn we’re seeing from other areas,” Sarah House, senior economist at Wells Fargo, told CNN.
President Joe Biden said in a statement Wednesday morning after the inflation data release that the future health of the U.S. economy was promising.
“Today’s report provides further evidence that core inflation is falling to pre-pandemic levels at a time when employment remains strong,” the statement said.