The Latest Inflation Reading

The core consumer price index rose 0.3 percent in August and was up 2.4 percent from a year earlier, the Labor Department said yesterday. While those figures are unexceptional, the more important news was the rise in medical costs.

August saw the biggest monthly rise in medical-care costs since 2016 as well as record increases in health-insurance prices. There was a 1.9 percent monthly rise - and an 18.6 percent annual increase  - in health-insurance prices, along with increases in hospital services and nonprescription drugs.

Also driving the core inflation gain were used-car prices, up 1.1 percent for a third straight increase, while shelter costs, which make up about a third of total CPI, rose 0.2 percent from the prior month. Energy prices fell 1.9 percent from the prior month as gasoline dropped 3.5 percent, but apparel was up 0.2 percent.