The national gasoline index rose 27.4% from a year earlier in August, slightly more than its 25.6% annual increase four years ago. Overall inflation and the annual decline in real hourly earnings, however, were substantially smaller than in August 2022.
The Consumer Price Index rose 0.4% on a seasonally adjusted basis from July, up from a 0.1% monthly increase, the U.S. Bureau of Labor Statistics reported Friday, September 11. The 12-month inflation rate held at 3.4% before seasonal adjustment.
Gasoline rose 3.9% in August and accounted for more than one-third of the monthly CPI increase. The broader energy index climbed 2.1% for the month and 16.3% over 12 months. Fuel oil rose 10.1% in August and 52% from a year earlier.
Inflation and wages four years apart
Average hourly earnings rose 0.3% before inflation in August. Because consumer prices rose 0.4%, real average hourly earnings fell 0.1% for all employees on private nonfarm payrolls, BLS reported separately.
Over the year, BLS data show that average hourly earnings rose 3.1% before inflation while consumer prices rose 3.4%. After inflation, hourly earnings fell 0.3%.
Real weekly earnings still increased 0.2% for the month and 0.3% for the year because the average workweek grew. The increase in real weekly earnings came from a longer average workweek, not an increase in real hourly pay.
August 2022 came about 19 months after former President Joe Biden took office. August 2026 falls at roughly the same point in President Donald Trump’s second term.
In August 2022, overall inflation was 8.3%, and the gasoline index was 25.6% higher than a year earlier, BLS reported. Gasoline fell 10.6% that month, but its year-over-year increase remained high.
Average hourly earnings rose 5.2% before inflation over the year ending in August 2022, while real hourly earnings fell 2.8%, BLS reported. Real weekly earnings fell 3.4%.
The same-point comparison is clear: gasoline’s annual increase is 1.8 percentage points higher now, but overall inflation is 4.9 points lower and the decline in real hourly earnings is 2.5 points smaller. These figures compare the annual rates in each period. They do not measure how much prices have changed between August 2022 and August 2026.
Core CPI, which excludes food and energy, rose 0.3% in August and 2.4% over the year. Grocery prices were flat for the month but 2.2% higher than a year earlier. Food away from home rose 0.3% for the month and 3.4% over the year.
North Texas pump prices run higher
AAA data listed regular gasoline at $3.88 per gallon in both Dallas and Fort Worth-Arlington on September 11. A year earlier, regular averaged $2.89 in Dallas and $2.87 in Fort Worth-Arlington, an increase of about 35% in both markets.
The Texas average reached $3.85, up from $2.80 a year earlier, an increase of about 37%. AAA’s daily retail averages use a different measure and time period than BLS’s national monthly index.
Diesel added to the pressure. AAA listed Dallas diesel at $5.83 per gallon, Fort Worth-Arlington at $5.80 and the Texas average at $5.67.
As previously reported by The Dallas Express, diesel neared $6 at an Interstate 20 truck stop in Dallas on Labor Day. Higher diesel prices can spread beyond the pump because many shipping and delivery companies add fuel surcharges to rates and invoices, according to the U.S. Energy Information Administration.
Freight and Fed pressure build
A separate BLS report showed final-demand producer prices rose 5.4% over 12 months. In August alone, diesel fuel prices jumped 24.1%, transportation and warehousing services rose 2.3%, and truck freight prices increased 2%.
Federal Reserve policymakers will meet September 15-16. In July, the Fed held its benchmark target range at 3.5%-3.75% and said inflation remained elevated partly because supply shocks had raised prices in sectors including energy. Three officials favored a quarter-point increase.
The CPI report landed 53 days before the November 3 midterm elections, placing fuel costs and hourly purchasing power in the campaign’s closing stretch.
Provided by Dallas Express
