Core CPI (ex food and energy) rose 0.2% MoM and 2.5% YoY, the weakest YoY gain since Mar 2021. Energy and gasoline fell for a second month; grocery prices declined for the first time since March, partly driven by a record drop in lettuce prices amid

2026-08-12

Core CPI (ex food and energy) rose 0.2% MoM and 2.5% YoY, the weakest YoY gain since Mar 2021. Energy and gasoline fell for a second month; grocery prices declined for the first time since March, partly driven by a record drop in lettuce prices amid a cyclospora outbreak. Housing rent/owners-equivalent rent rose 0.1% MoM and accounted for roughly two-thirds of the headline CPI increase. AI-related price pressure showed in a record 21.2% YoY rise in computer software and accessories; computers, peripherals and smart-home assistants posted their largest gains in over four years. Market reaction: traders trimmed odds of a Fed September rate hike after the release.