The consumer price index gained 0.1% last month after being unchanged in July, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the CPI dipping 0.1%.
Overall inflation is slowing as goods prices retreat after surging earlier this year amid a loosening of bottlenecks in global supply chains and a shift in spending back to services. Fed officials gather for their regular policy meeting next Tuesday and Wednesday with inflation remaining way above the US central bank's 2% target. Fed Chair Jerome Powell reiterated last week that the central bank was"strongly committed" to fighting inflation.
The inflation report followed data last week showing continued labor market resilience. First-time applications for unemployment benefits are at a three-month low and job growth remains solid. There were two job openings for every unemployed person on the last day of July.