Consumer Price Index Rises 0.5% in August

rices paid by consumers rose 0.5% in August, while the so-called "core" consumer price index, which excludes food and energy, rose 0.1%, the Labor Department reported Thursday.

The gains in both were the same as July. The overall CPI matched analysts’ expectations, while the core rate was forecast to rise 0.2%.

The CPI is the government's broadest gauge of costs for goods and services. Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are falling, it could reflect a decrease in demand for consumer goods, which decreases the demand for trucking services.

Energy prices rose 5% in August, the biggest jump since March 2003, after rising 3.8% a month earlier. Gasoline prices increased 8.3% for the month.

Food prices, which account for about one-fifth of the index, rose were unchanged following a 0.2% rise in July.

The cost of all goods including cars, apparel and food rose 1.1% last month after rising 0.6% in July.