Consumer Prices Keep Rising With No Relief in Sight for Families
The U.S. Bureau of Labor Statistics reported today that the Consumer Price Index (CPI) rose 2.9% over the past year, up from 2.7% in July, and climbed 0.4% over the past month. Core CPI – which excludes food and energy – also increased 0.3% in August and 3.1% over the past year. The Department of Labor also released initial claims for unemployment insurance for the week ending September 6th, showing that 263,000 claims were filed, the highest level since October 2021.
Alex Jacquez, Chief of Policy and Advocacy at the Groundwork Collaborative, shared his reaction on persistent inflation and the weakening labor market as a result of President Trump’s economic agenda:
“Make no mistake, inflation is accelerating and American families continue to feel price pressures across the board from children’s clothing, to groceries, to autos. Rate cuts will not ease the inescapable financial pain that the Trump economy is inflicting on households across the nation.”
Additional background:
- The continued rise in food and service costs contributed to another uptick in consumer prices in August. The data remains clear: inflation is not easing. Price pressures persist where it matters most in goods and services households can’t go without.
- Families also continue to feel sticker shock at the grocery store. Grocery prices rose 0.6%, with items like beef, fruits, and vegetables leading increases.
- Parents shopping for back-to-school items were hit with another sticker shock, with a 0.8% price increase in girls’ apparel and a 1.5% price increase in boys’ and girls’ footwear. Consumers experienced price pressures in transportation, with airline fares up 5.9% and motor fuel up 1.8% from last month, and new and used cars and auto repairs seeing increases..
- The Federal Reserve has signaled a rate cut next week in light of worsening labor market conditions, but much of the inflation families face is being driven by President Trump’s mishandling of the economy. Rate cuts will not ease the pain, and slow growth combined with stubbornly high costs will punish working families.
- Today’s report underscores the reality working families face in our economy: Food, shelter, and other essentials are becoming even more unaffordable as a direct result of President Trump’s economic mismanagement.