The August 2026 Consumer Price Index (CPI) provides another reason to be cautious about declaring victory over inflation. The CPI increased 0.4 percent in August, four times July's 0.1 percent increase. Annual inflation remained at 3.4 percent, while core CPI increased 0.3 percent for the month.
The relatively stable annual headline masks a critical development: inflation accelerated during August.
Energy Is Again the Warning Sign
Energy prices increased 2.1 percent in August, while gasoline jumped 3.9 percent. Gasoline alone accounted for more than one-third of the monthly CPI increase. Gasoline prices are now 27.4 percent higher than a year ago, according to US Department of Labor Bureau of Labor Statistics (BLS).
This matters for transportation, logistics, construction, food distribution, delivery and other businesses with significant fuel exposure. For these firms, a 3.4 percent national inflation rate bears little resemblance to their actual increase in operating costs.
Minority Firms Face a Different Inflation Reality
CPI measures consumer prices. It does not measure the cost structure of Minority Business Enterprises.
A minority-owned trucking company faces fuel, insurance, vehicle and financing costs. A restaurant faces food, utilities, rent and labor. A contractor faces equipment, materials, transportation and financing.
This is why we continue to believe an MBE Inflation Index—measuring actual minority-business costs by industry and geography—would provide valuable information.
August Deserves a Closer Look
We remain skeptical of relying too heavily on the topline number: the underlying August data tell a less comfortable story than the 3.4 percent annual figure suggests.
Monthly CPI accelerated from 0.1% to 0.4%. Energy jumped 2.1%. Gasoline rose 3.9%. Core inflation accelerated, shelter inflation increased, and transportation services rose 0.5%.
The August Producer Price Index reinforces the concern: producer prices increased 0.4 percent for the month and 5.4 percent over the year.
MBEs Are Part of the Solution
Minority businesses should not be viewed only as victims of inflation. Expanding MBE participation can increase supplier competition, diversify sourcing, reduce concentration risk and strengthen regional supply chains. Supplier diversity is a supply-chain resilience and inflation-management strategy.
The August CPI may say annual inflation is 3.4 percent. But the more important question is: What inflation rate are Black and minority-owned businesses actually experiencing?
The August data suggest that, for many MBE firms, the answer may be considerably higher.