The US Bureau of Labor Statistics (BLS) announced that inflation in America was flat in August as the Consumer Price Index for All Urban Consumers (CPI-U) rose by only 0.2 per cent, the same increase as in the previous month July. 

Over the past 12 months, the overall CPI-U has increased by 2.5 per cent before seasonal adjustment, marking the smallest 12-month increase since February 2021. In August, the shelter index experienced a 0.5 per cent increase as the main contributor to the rise in the all-items index. 

The energy index fell by 0.8 per cent after remaining unchanged the previous month. The food index increased by 0.1 per cent in August, slightly lower than the 0.2 per cent increase in July. The food away from home component rose by 0.3 per cent, while the food at home component remained unchanged.

Excluding the food and energy categories, the CPI-U for all other items climbed by 0.3 per cent in August, compared to the 0.2 per cent increase in July. Contributing indexes include shelter, airline fares, motor vehicle insurance, education, and apparel. 

Meanwhile, the indexes for used cars and trucks, household furnishings and operations, medical care, communication, and recreation declined during the month. 

Over the 12 months ending in August, the index for all items excluding food and energy rose by 3.2 per cent, marking the smallest year-over-year increase since early 2021.

The energy index decreased by 4.0 per cent over the past year, while the food index recorded a 2.1 per cent increase.