The Labor Department announced on Tuesday the U.S. consumer price index (CPI) rose 0.3 percent m-o-m in August, following an unrevised 0.5 percent m-o-m gain in the previous month. This was the smallest one-month increase in headline CPI since January.

Over the last 12 months, the CPI climbed 5.3 percent y-o-y, decelerating from +5.4 percent y-o-y reported for the period ending in July. This represented the lowest reading in the last three months.

Economists had forecast the CPI to increase 0.4 percent m-o-m and 5.3 percent y-o-y in the 12-month period.

According to the report, the indexes for gasoline (+2.8 percent m-o-m), household furnishings and operations (+1.3 percent m-o-m), food (+0.4 percent m-o-m), and shelter (+0.2 percent m-o-m) all rose in August and contributed to the monthly all items seasonally adjusted gain.

Meanwhile, the core CPI excluding volatile food and fuel costs edged up 0.1 percent m-o-m in August after an unrevised 0.3 percent m-o-m advance in the previous month.

In the 12 months through August, the core CPI rose 4.0 percent compared to an unrevised 4.3 percent climb for the 12 months ending July. This was the smallest 12-month increase since May.

Economists had forecast the core CPI to increase 0.3 percent m-o-m and 4.2 percent y-o-y last month.