US inflation remained at 3.4% year over year in August, but prices accelerated during the month, driven primarily by gasoline.

The Consumer Price Index (CPI) rose 0.4% in August, four times the 0.1% increase recorded in July, according to the latest Bureau of Labor Statistics (BLS) report.

Gasoline was the primary driver. Prices rose 3.9% in August and accounted for more than one-third of the monthly increase in the overall index.

Pressure was not limited to gas stations. Housing costs rose 0.3%, food away from home increased 0.3%, and transportation services climbed 0.5%.

Core US inflation, which excludes food and energy, increased 0.3% during the month, although its year-over-year rate declined from 2.5% to 2.4%.

Inflation Holds at 3.4%: What It Means for Social Security COLA 2027 – PHOTO: Shutterstock Social Security Gets a New Clue About the 2027 Increase. The report includes another important figure for retirees: The CPI-W rose 3.5% year over year in August and 0.4% during the month.

The Social Security Administration uses this index to calculate the COLA, the annual cost-of-living adjustment applied to benefits.

Therefore, the newly reported 3.5% rate does not mean Social Security benefits will increase by 3.5%. September’s data are still needed to complete the calculation.

Inflation intensified in August, reinforcing arguments in favor of an interest rate hike https://t.co/syC8Pipyfn

— CNN en Español (@CNNEE) September 11, 2026

The September CPI report is scheduled for release on October 14, according to the BLS calendar.

That report will complete the third-quarter data and provide a more precise picture of the adjustment Social Security beneficiaries will receive in 2027.

In the meantime, the August report sends a mixed signal: Annual core US inflation continues to moderate, but the cost of living accelerated again during the month.

For millions of households, the pressure remains visible in expenses that are difficult to avoid: gasoline, housing, transportation, and meals away from home.

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