**US Consumer Prices Rise More Than Expected in August**
U.S. consumer prices saw a larger-than-anticipated increase in August, according to the latest data from the Labor Department. The Consumer Price Index (CPI) rose 0.6% last month, the biggest monthly gain in over a year, largely driven by higher gasoline costs. On an annual basis, prices climbed 3.7%, up from 3.2% in July, suggesting inflationary pressures remain persistent despite the Federal Reserve’s continued efforts to cool price growth.
Core inflation, which strips out food and energy, rose by 0.3% for the month and 4.3% over the year. While this marks a slight moderation compared to previous months, the report indicates that the overall inflation picture remains complicated. The data will likely influence the Federal Reserve’s upcoming interest rate decisions, as policymakers weigh how to manage persistent inflation without stifling economic growth.
**Impact on Arizona Real Estate Investing**
For real estate investors in Arizona, persistent inflation and the possibility of further interest rate hikes may mean higher mortgage rates and borrowing costs. As consumer prices remain elevated, potential homebuyers could face affordability challenges, possibly impacting demand for residential properties. However, continued population growth and limited housing supply in Arizona may help support property values, even amidst national economic uncertainty.
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