Americans are still seeing a split economy at the checkout counter. The latest Consumer Price Index report from the U.S. Bureau of Labor Statistics, released Sept. 11, showed overall prices in August 2026 were up 3.4 percent from a year earlier, but that headline number masks sharp differences across household budgets.
Some categories are finally easing. Others are still moving the wrong way, especially for costs that are hard to avoid, like rent, meals away from home and parts of medical care.
Used cars and some medical costs are easing
The clearest price relief is showing up in a few goods categories. Bureau of Labor Statistics data shows used cars and trucks were down 2.3 percent from a year earlier in August 2026. Medical care commodities, a category that includes items such as prescription drugs and medical equipment, were down 2.7 percent. Health insurance was down 8.5 percent over the same period. Food bought for home use rose 2.2 percent, slower than the overall inflation rate. Dairy and related products were down 0.3 percent.
There are also smaller pockets of relief elsewhere. Motor vehicle insurance was down 5.1 percent from a year earlier, and moving, storage and freight expense was down 4.6 percent, according to the detailed CPI tables. Telephone hardware and related consumer information items fell 14.1 percent, while smartphones were down 12.2 percent.
Those declines matter because they show inflation is no longer moving in one direction across the economy. For households replacing a car, shopping for electronics or buying groceries for home, some prices are either rising more slowly or falling outright. But those savings do not hit every family equally, and many of the biggest monthly bills still sit in categories that continue to climb.
Housing remains one of the biggest pressure points. Shelter was up 3.0 percent from a year earlier in August, and rent of primary residence rose 2.7 percent. Owners’ equivalent rent of residences, a measure tied to housing costs for homeowners, rose 3.1 percent. Shelter also carries a large weight in the CPI, which helps explain why inflation still feels stubborn even when some goods are getting cheaper.
Food away from home is still rising faster than groceries. Restaurant and other away from home food prices were up 3.4 percent over the year, including 3.5 percent for full service meals and snacks and 3.2 percent for limited service meals and snacks.
Travel remains another sore spot. Airline fares were up 23.4 percent from a year earlier, one of the biggest increases in the major categories tracked by BLS. Transportation services overall rose 2.4 percent, and motor vehicle maintenance and repair climbed 5.2 percent. For families commuting, booking flights or paying to keep an older car on the road, that means inflation is still very real in the services side of the economy.
The August CPI data shows a familiar pattern. Goods prices are generally softer than service prices. BLS reported commodities less food and energy commodities were up 0.7 percent from a year earlier, while services less energy services rose 3.0 percent. That gap helps explain why some store aisles feel calmer even as rent, care and travel keep straining budgets.
Medical care shows that divide clearly. Medical care services rose 2.5 percent overall, hospital and related services climbed 5.5 percent, hospital services rose 5.2 percent, and home health care jumped 10.6 percent. At the same time, medical care commodities fell 2.7 percent and health insurance declined 8.5 percent. In plain terms, the items people buy may be cheaper, but hands on care is still getting more expensive.
What comes next will matter just as much as the latest snapshot. The Bureau of Labor Statistics has scheduled its September 2026 CPI release for Oct. 14, 2026. Until then, the August report offers a straightforward picture: some goods are giving consumers a break, but core living costs, especially housing and services, are still rising enough to keep pressure on household budgets.