Prices in the US rose at an 8.3% annual rate last month and remained elevated even as gasoline costs eased.
While the annual rate fell from 8.5% in July, the cost of food, shelter and medical supplies continued to rise, the Labor Department said.
Economists had hoped for a more far-reaching easing of inflationary pressures.
Inflation remains a key issue for Americans, putting pressure on the White House and other policymakers.
“Americans have been telling us for months this is their number one concern, and rightly or wrongly they blame whoever runs the country,” said Chris Jackson, senior vice president of polling firm Ipsos.
Approval ratings for US President Joe Biden fell below 40% earlier this year, reflecting public concerns about the rising cost of living.
While they have started to recover in recent weeks as gasoline prices have fallen, the issue remains “a huge problem” for the president and for the Democratic Party more broadly, Mr Jackson said.
The next round of national elections, which will determine who controls Congress, is due in November.
It would be unprecedented for a president with approval ratings like Mr. Biden’s to take seats mid-term, Mr. Jackson said.
Kenny Shorne is among the many Americans feeling weighed down by rising prices.
The 23-year-old, who earns a living from construction and photography jobs, lives in New Jersey with his family to keep expenses down. He also recently put his master’s degree in communications on hold because he’s worried he won’t be able to afford it when other costs mount up.
One of the issues is the high price of gasoline, although they have come down in recent weeks.
“Inflation makes it difficult for me to see a future worth living,” he says. “It’s really getting on my nerves because I don’t know what the answer is.”
The latest report from the Department of Labor showed that US grocery costs rose 11.4% in the 12 months to August, while housing costs rose 6.2% and medical supplies rose 5.6%.
Energy costs — one of the big drivers of inflation — also remained far higher than a year ago, but they have fallen sharply over the past two months, falling more than 10% from July to August, the Labor Department said.
While economists remain concerned as numbers show non-energy prices are rising, the headline matters most when it comes to shaping people’s perceptions, said Betsey Stevenson, professor of economics and public policy at the university of Michigan, who served in the White House under her President Barack Obama.
“It’s really good news that gas prices are falling. It gives people a little more wiggle room in their budgets, a little more breathing room, and I think it makes people feel a little bit better too,” she said.
But she added: “I don’t think it speaks for being from the woods”. She expects inflation to remain above the Federal Reserve’s inflation target of 2% by the end of next year.
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