A highly anticipated report released by the Labor Department on Tuesday showed an unexpected uptick in U.S. consumer prices in the month of August.
The Labor Department said its consumer price index inched up by 0.1 percent in August after coming in unchanged in July. Economists had expected consumer prices to edge down by 0.1 percent.
The modest increase in consumer prices came as higher prices for shelter, food and medical care offset another steep drop in gasoline prices.
The report showed core consumer prices, which exclude food and energy prices, climbed by 0.6 percent in August after rising by 0.3 percent in July. Core prices were expected to increase by another 0.3 percent.
Compared to the same month a year ago, consumer prices were up by 8.3 percent in August, reflecting a slowdown from the 8.5 percent spike in July. Economists had expected the annual rate of growth to slow to 8.1 percent.
Meanwhile, the annual rate of growth by core consumer prices accelerated to 6.3 percent in August from 5.9 percent in July. The annual rate of growth was expected to rise to 6.1 percent.