The US economy was still plagued by rapidly rising prices last month, although a decline in the price of gasoline brought some relief.
According to the Labor Department, the annual inflation rate, which measures how quickly prices rise, decreased to 8.3% in August.
That was a second month of drop and was lower than the 8.5% in July.
However, prices for food, housing, and healthcare kept rising, surprising analysts who were hoping for a more widespread easing.
Following the release, shares in the US fell precipitously. In mid-morning trading, the Dow Jones was down more than 2.5%, while the S&P 500 and Nasdaq were down more than 3%.
As a result of worries about the rising cost of living, the report also increased pressure on US President Joe Biden, whose support ratings fell below 40% early this year.
Despite a minor improvement in recent weeks as a result of falling gas costs, pollster Chris Jackson described the situation as “a tremendous concern” for both the president and the Democratic party as a whole.
