By Keith Burbank. Bay City News.
Inflation in the Bay Area fell half a percentage point between June and August but rose 5.7 percent from a year earlier, according to data released Tuesday by the U.S. Bureau of Labor Statistics.
The data reflects inflation as measured by the Consumer Price Index for Alameda, Contra Costa, San Francisco, San Mateo and Marin counties.
Nationwide, inflation rose 8.3 percent from a year earlier, more than expected. Better-than-expected results can prompt the Federal Reserve, the nation's central bank, to raise a key interest rate to curb rising prices. That can cause a recession.
Regionally, inflation rose 8.1 percent annually in the Western U.S.
The two-month drop in prices in the Central Bay Area was driven in large part by lower gasoline prices, Bureau of Labor Statistics economist David Kong said Wednesday.
But energy prices are highly volatile and the decline may not be a trend, Kong said.
Kong also noted that residential property rents in the Central Bay Area rose less than rents nationwide.
Central Bay Area rents rose 3.5 percent year-over-year compared to 7.8 percent nationally.
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