Here’s the inflation breakdown for August 2025 — in one chart
Shopping on August 28, 2025, a store in a store in Los Angeles browse shoes.
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Economists, inflation, such as food and electricity for higher prices for staples, such as clothing and home furniture, such as physical goods such as the upward pressure on the prices, he said.
. Consumer Price IndexThe Office of Statistics on Thursday, an important inflation indicator, increased by 2.9% in August compared to the previous year.
This is an increase from 2.7% in July and the fastest annual inflation rate Since January.
“Inflation is disturbing and accelerating,” Moody’s chief economist Mark Zandi said. He said. “I think we should expect more acceleration in inflation for the next six to 12 months.”
Economists say that tariffs contribute to increased goods prices
CPI is watching how fast the prices rise or fall for a basket from haircuts. Coffee and concert tickets.
Wells Fargo Economics Senior economist Sarah House, inflation has largely reigned for consumer goods for consumer goods, he said.
“Core” prices commodity – excluding food and energy – 1.5% increased by 1.5% in August compared to the previous year, the fastest annual tempo since May 2023.
The core commodities, which were excluded after the pandemi and then have not increased rapidly since 2012.
President Donald Trump said that the tariff policies followed by the main contribution to the increasing inflation for goods.
US organizations importing goods from abroad pay import taxes. Economists, companies will ultimately transfer at least some of these additional taxes to consumers, but the processes will take months because of various business strategies to try to blind the impact.
“Seeing some of the biggest tariffs since the 1940s, it is definitely part of the turntable at goods prices.” He said.
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Economists, tariff effect most of the home furniture, devices, clothing and entertainment goods are noticed in categories such as, he said.
According to CPI data, clothing prices, for example, increased relatively quiet 0.2% during last year. However, annual inflation rates have increased sharply in recent months, and in May, it has recently climbed for three months of a low -month month of -0.9%.
Zandi said that a large outfit imported to the US came from Asian countries, where tariffs increase significantly.
“Tariffs are all over the clothing prices,” said Zandi. “They have risen strongly for the last few months.”
Trump imposed most of the extensive tariffs of the International Emergency Economic Forces Law on trade partners. The Supreme Court will discuss the legality of this maneuver during oral arguments in November.
Economists, even if the Trump administration failed in court, there are alternative ways to keep many tariffs to keep in place.
For some foods ‘sticker shock’
However, economists said that physical goods did not only contribute to rising inflation.
According to CPI, grocery prices have increased from 2.2% to 2.2% in August in August and the fastest annual tempo since August 2023 data.
Tariffs, for example, may play a role for some foods (most of which have high tariff rates from nations such as Brazil and Vietnam, and for some foods from Mexico.
For example, beef meat, according to something recently done, caused “sticker shock” for consumers in meat meter due to short supply and stable demand. report Wells by Fargo Agri-Food Institute.
“Since January 2020, the most climbing fruits and vegetables and meats, poultry, fish and eggs have increased the most since January 2020.” “Most of these food products were affected by the tariffs because the US is a clear food importer.”
Service inflation looks ‘stuck’
In the meantime, the disposition between the services stopped, that is, the services will probably not offer a balance against increasing goods inflation, he said.
House, “It is no longer slowing down, close -term problem.” He said. “We will get stuck here for at least a few months.”
According to CPI data, for example, electricity prices have increased by more than 6% since August 2024.
Zandi said that the data centers are largely due to the strong demand created by the “explosive growth” using wide electricity.
Travel prices also increased. According to the CPI data, airline fees increased by almost 6% until July -August (4% from 4% of the previous month) (4% of the previous month).
House is probably due to consumer demand. In the first half of the year, consumers who are concerned about federal business cuts in the first half of the year draw attention to travel purchases, he said.
However, economists said there are some downward inflation pressures.
For example, as workers lost their bargaining forces, the labor market, which created downward pressure on wage increase, has cooled significantly. Therefore, businesses may need less to increase the prices of consumers if labor costs do not increase rapidly.
Economists, the Federal Reserve is expected to reduce interest rates at the upcoming policy meeting next week, but economists said that the risk of raising inflation has increased.
“There’s no good options here,” Zandi said. “The best course is to reduce rates to prevent the disintegration of the economy, but the risk of inflation is more established.”
