The consumer price index rose 3.7% in August from a year ago, proof that core inflation is "trending down toward pre-pandemic levels," says President Joe Biden.

"Unemployment has remained below 4% for 19 months in a row, the share of working age Americans with a job is the highest in 20 years, and real wages are higher now than they were before the pandemic," Biden said in a statement following the release of a mixed report from the Labor Department showing the annual rise in underlying inflation was the smallest in nearly two years.

"Overall inflation has also fallen substantially over the last year, but I know last month's increase in gas prices put a strain on family budgets," Biden added.

"That's why I remain laser-focused on cutting energy costs, including by investing in clean energy to bolster our energy security. We're continuing to build an economy from the middle out and bottom up, with better jobs and lower costs — even as Republicans in Congress push for tax cuts for the wealthy and large corporations and devastating cuts to programs hard-working Americans count on."

The consumer price index increased by 0.6% last month, the largest gain since June, 2022. The CPI had risen 0.2% for two straight months. August's increase in the CPI was in line with economists' expectations.

Gasoline prices, which jumped 10.6% after rising 0.2% in July, accounted for more than half of the increase in the CPI last month. Gasoline prices accelerated in August, peaking at $3.984 per gallon in the third week of the month, according to data from the U.S. Energy Information Administration. That compared to $3.676 per gallon during the same period in July.

Information from Reuters was used in this report.

• Wall Street Churns a Bit Higher in Early Trading
• Inflation Accelerates to 3.7% on Gas Price Spike