Why Inflation in the U.S. Remains High

High inflation in the U.S. persisted during August 2026: consumer prices rose 0.3% compared to July, reported the Bureau of Economic Analysis (BEA) in Washington on September 30. Rising energy costs pushed up the monthly figure, while a statistical revision reduced previously published annual estimates.

Why Did Inflation Remain High in August?

Gasoline was the main driver of the monthly increase. According to Reuters, its price jumped 4.4% in August; food prices, meanwhile, showed no monthly variation. The outlet linked energy pressure to the war in Iran.

The indicator used is the Personal Consumption Expenditures price index, known as PCE. The Federal Reserve uses it to evaluate its 2% inflation target. August’s result of 3.4% annually remains above that goal.

Core inflation excludes food and energy because their prices tend to fluctuate more. It also showed persistence: it advanced 0.2% compared to July and 3.0% compared to August 2025. Reuters identified increases in transportation, restaurants, and accommodation among pressures on services.

What Figures Did the Federal Government Release?

The BEA, a division of the Commerce Department, published the following results for August. Monthly variations compare August to July; annual variations compare August 2026 to August 2025.

The annual increase of 3.4% does not mean that all products rose exactly that proportion. Nor does it mean that overall prices fell: it indicates that the index was higher than one year earlier. The impact on each household depends on what they buy and how much they spend on fuel, food, and services.

Consumers continued spending despite inflation. The BEA reported that total spending increased 0.9% in August and 0.6% after adjusting for prices. However, inflation-adjusted disposable income did not grow that month, and the savings rate fell to 4.1%.

Why Was the July Figure Revised?

The BEA periodically updates its economic accounts to incorporate new information and improve measurements. In its August report, it revised estimates going back to January 2021.