Consumer prices in the U.S. increased 1.52% for the year ending in August.  In the month of August alone, the increase was just 0.1%.  The graph below shows year over year increases in the Consumer Price Index (CPI) back to 2003.

By historical standards, recent inflation rates are relatively low; over the past 50 years, inflation averaged about 4%. However, the average has been just 2.4% since 2003.

Also, keep in mind that the CPI measures changes in the overall price level.  It is computed by looking at average prices of over 8,000 goods in 38 geographic locations.  Thus, even though prices increased 1.52% over the past year, some prices rose much more and some even fell. 

Prices that rose significantly:

• Fruits and vegetables: +3.6%
• Tobacco and smoking products +3.2%
• Hospital Services: +5.7%

Prices that fell:

• Used cars and trucks: -1.0%
• Nonalcoholic beverages: -1.0%
• Gasoline: -2.4%