Inflation gauge says rising prices slowed in August for 2nd month in a row

Sept. 13 (UPI) -- One of the United States' top inflation gauges said on Tuesday that overall prices slowed in August for the second straight month, due mainly to lower costs for energy sources like gasoline.

The government's Consumer Price Index showed that prices increased by 0.1% from July to August and the growth slowed to 8.3% over the last 12 months ending in August. That figure was 8.5% a month ago.

The report said the slower overall growth was heavily influenced by energy prices. Overall, energy prices dipped by 5% in August and gas prices 10.6%.

The assessment said the decline in energy prices was enough to mostly absorb the increases elsewhere in the economy, such as shelter, food and medical care.

According to the index, food prices rose by 0.8% from July. Gas prices are more than 25% higher than they were a year ago, although prices have come down significantly since June.

The food index showed its smallest monthly increase since last December. If food and energy prices are removed from the equation, inflation climbed by 0.6% from July to August.

A few other indices showed declines in August, including airfare, communication and used cars and trucks, the report said.

President Joe Biden and Congress have moved to limit inflation recently. Biden signed the Inflation Reduction Act last month and he authorized millions more barrels of crude oil to be released from the national strategic reserve.

"Today's data show more progress in bringing global inflation down in the U.S. economy," Biden said in a statement after the CPI's release. "And real wages went up again for a second month in a row, giving hard-working families a little breathing room.

"It will take more time and resolve to bring inflation down ... and my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America."