The consumer price index rose by 0.4% in August, as expected, and was up 0.3% excluding food and energy prices, above expectations for a 0.2% gain.
The year-over-year growth rate remained at 3.4% while the core measure was up 2.4% year-over-year after a 2.5% rate in the previous month.
Food prices rose by 0.1%, while energy prices increased by 2.1%. Gasoline prices alone were up 3.9%.
Owners' equivalent rents and regular rents both rose by 0.2%, accounting for about one-third of the overall gain.
In addition, prices of new vehicles rose by 0.3% after a 0.1% gain in the previous month and used vehicle prices rose by 0.4% for a second straight month.
The preliminary Michigan Sentiment index fell to 47.8 in September from 51.7 in August.
Consumers' assessment of current conditions and the near-term outlook both deteriorated in September, while inflation expectations surged.
The US Treasury reported a $166.80 billion budget gap in August, much smaller than the $344.79 billion deficit reported in August 2025 due to larger receipts and smaller outlays.
The Q3 GDPnow estimate from the St. Louis Federal Reserve is for a 2.405% gain, revised up from a 2.367% gain in the previous estimate, while the estimate from the New York Fed was unrevised at a 2.26% gain.