U.S. inflation unexpectedly rose in August, despite a drop in gas prices

TWIN FALLS, Idaho (KMVT/KSVT) — Some are worried if the U.S economy is heading into a recession, after the report of U.S. inflation unexpectedly rose in August, despite a drop in gas prices.

The Labor Department’s Consumer Price Index report showed CPI gained by 0.1% last month - when economists were expecting it to fall by 0.1%.

Over the last 12 months inflation has risen 8.3%, there were increases in the cost index for goods across the board. But they were offset by a 10.6% decline in the gasoline index.

Some financial experts are expecting the federal Reserve to raise interest rates again, maybe by as much as one percentage point.

“If I was to predict, I would say we are heading into a recession next year. I would say a mild recession,” said University of Idaho Professor, Steven Peterson. “I don’t see, most economist don’t see, the conditions for a major downturn, but I think we are most definitely heading into a recession.”

The Consumer Price Index for September 2022 is scheduled to be released on Thursday, October 13.