Prices rose in August, and energy was not the only culprit. Here are five things we learned from U.S. economic data released during the week ending September 11.
Inflation accelerated in August. The Consumer Price Index (CPI) surged 0.4 percent on a seasonally adjusted basis, the largest monthly increase for the Bureau of Labor Statistics measure since May. Energy prices rose 2.1 percent (gasoline: +3.9%; fuel oil: +10.1 percent), while food CPI was up a modest 0.1 percent. Excluding both, core CPI grew 0.3 percent (its largest gain since April). Prices increased for transportation services (+0.5 percent), used cars/trucks (+0.4 percent), new vehicles (+0.3 percent), and shelter (+0.3 percent). Prices declined 0.2 percent for medical care commodities and held steady for apparel. Headline CPI has risen 3.4 percent over the past year, with core CPI up 2.4 percent.
Wholesale prices also jumped in August. The Producer Price Index (PPI) for final demand swelled a seasonally adjusted 0.4 percent, for its biggest gain since May. The same Bureau of Labor Statistics report showed core PPI (which removes food, energy, and trade services) up 0.3 percent, down from July’s 0.3 percent advance. Goods prices rose 1.1 percent, boosted by a 4.2 percent jump in the energy PPI (diesel fuel: +24.1 percent; gasoline +4.2 percent). Food PPI edged up 0.1 percent, while core goods CPI gained 0.4 percent. Services PPI inched up 0.1 percent. Final demand PPI had jumped 5.4 percent over the past 12 months, with core PPI up 4.7 percent.
Home sales fell in August. Existing home sales declined 2.9 percent to a seasonally adjusted 3.98 million units. This left the National Association of Realtors measure down 1.2 percent from a year earlier, at its lowest level since June 2025. Sales fell month-over-month in three of four Census regions, while they were flat in the West. Three of four regions also posted year-over-year sales declines, with activity unchanged in the South. The number of unsold homes on the market rose 3.2 percent to 1.62 million units (+5.9 percent versus August 2026), equivalent to a 4.9-month supply. The median sales price of $429,100 was up 1.6 percent from a year earlier.
Consumers’ moods soured in early September. The University of Michigan’s Index of Consumer Sentiment fell 3.9 points to a seasonally adjusted 47.8 (1966Q1=100). The index was down 13.2 percent from a year earlier. The current conditions index fell a full point to 50.9 (-15.7 percent versus September 2025), while the expectations measure slumped 5.7 points to 45.8 (-11.4 percent versus September 2025). The press release noted that sentiment among both Democrats and Republicans declined and that “[y]ear-ahead expectations for both personal finances and business conditions plunged.” One-year anticipated inflation rose 0.6 percentage points to +4.6 percent.
Small business owners were slightly less optimistic in August. The Small Business Optimism Index fell 1.1 points to a seasonally adjusted 98.7 (1986=100). The National Federation of Independent Business index was 100.8 a year earlier. Only two of the ten index components improved from their July readings (expected credit conditions and whether current inventories were too low). Six others declined, including expected future economic conditions, plans to increase employment, and earnings trends. The press release noted “elevated” uncertainty tied to “weakened sales, supply chain disruptions, and inflation pressures.”
Other U.S. economic data released over the past week:
- Jobless Claims (Week ending September 5, 2026, First-Time Claims, seasonally adjusted): 206,000 (-1,000 vs. the previous week, -53,000 vs. the same week a year earlier). 4-week moving average: 206,000 (-13.9% vs. the same week a year earlier).
- Consumer credit (July 2026, Outstanding Credit Consumer Balances (non-real estate), seasonally adjusted): $5.186 trillion (+$18.1 billion vs. June 2026; +2.6% vs. July 2025.
- Monthly Treasury Statement (August 2026, Year-to-Date 2026 Federal Government Budget Deficit): -$1.966 trillion (-0.4% vs. comparable year-to-date 2025 deficit).
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What We Learned About the U.S. Economy Last Week 