Inflation ticked up to 3.7% in August, driven by gas prices

Inflation increased to a 3.7% rate for the year ending in August, the second such increase after a full year of declines, driven in large part by rising gas prices.

The uptick, reported on Wednesday by the Bureau of Labor Statistics in an update to the consumer price index, is some bad news for President Joe Biden, who has been trying to reassure voters that he is curbing price pressures, and for the Federal Reserve, which has desperately maneuvered to bring down inflation over the past year.

On a month-to-month basis, inflation rose 0.6%, in line with expectations.

It is important to note that the major factor driving up the headline number was gasoline prices. Gas prices rose more than 10% from just July to August alone, accounting for more than half of the headline increase in prices.