Continued Rising Food Costs Contribute to Inflation Increasing 0.1% in August

While gas prices continued to fall in August, overall inflation didn’t budge. The U.S. Bureau of Labor Statistics released its Consumer Price Index today, and inflation increased 0.1% from July to August, with food costs cited as one of the top contributors.

In August, the food index increased 0.8%, the smallest monthly increase since December 2021, though the index was up 11.4% year-over-year—the largest 12-month increase since May 1979, says the report.

The food away from home index rose 0.9% in August, while the food at home index rose 0.7%, marking the first time food away from home inflation outpaced food at home inflation all year. The food away from home index is up 8% year-over-year, while the food at home index is up 13.5%.

As for restaurant menu inflation, full-service meal prices increased 0.8% in August, and limited-service meal prices rose 0.7%. Over the last year, full-service meal prices are up 9%, and limited-service meal prices are up 7.2%.

Overall inflation now sits at 8.3% year-over-year.