Consumer prices rose 2.7 percent in August from a year earlier, with higher housing and gasoline costs driving most of the increase. The Labor Department said Thursday that the consumer price index advanced 0.2 percent on a monthly basis. Despite the monthly gain, annual inflation softened from the 2.9 percent pace set during the 12 months ended in July. The more modest inflation rate should help to boost the spending power of Americans whose recent wage gains had been eaten up by higher prices. The Federal Reserve is closely monitoring inflation levels in order to determine if short-term interest rates should be increased to keep prices stable.

Source: ABC News September 13, 2018 12:39 UTC