Economics

U.S. Inflation Quickened in August on Sharp Gain in Used Cars

  • Cost of used vehicles accounted for 40% of core CPI rise
  • College tuition costs drop as schools turn to remote learning
Vehicles sit on display for sale on the lot of a car dealership in Peoria, Illinois.Photographer: Daniel Acker
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U.S. inflation quickened in August, driven by the sharpest monthly gain in used-vehicle costs since 1969 and consistent with a gradual pickup in prices as the economy recovers from the pandemic-induced downturn.

The consumer price index rose 1.3% from a year ago after a 1% annual increase in July, Labor Department figures showed Friday. The CPI climbed 0.4% from the prior month following a 0.6% advance. The median projections in a Bloomberg survey of economists called for a 1.2% year-over-year rise and a 0.3% gain on a monthly basis.