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Bay Area prices hop higher in August as elevated inflation reappears

September 11, 2025
Bay Area prices hop higher in August as elevated inflation reappears

The Bay Area inflation rate jumped during August as consumer prices pushed higher for a wide range of items, notably food and medical expenses, according to a new federal government report released Thursday.

The region’s consumer price index rose by an annual pace of 2.5% during August, the U.S. Bureau of Labor Statistics reported. The index measures shifts in cost for everyday items such as food, gasoline and shelter.

The 2.5% increase over the one-year period ending in August was higher than the previous reports for the region, which consisted of a 1.3% increase in April and a 1.5% rise in consumer prices in June, the report showed.

Nationwide, consumer prices surged 2.9% higher on a yearly basis. In both June and July, the government reported inflation increased 2.7% in each month. The nationwide inflation report is released each month, while the Bay Area report is released only every other month.

In the Bay Area, food prices jumped by 3.5% in August and medical costs rose 3.4%. The cost of food at home increased by 4.3%, while the cost of food away from home rose 2.7%.

Gasoline prices in the Bay Area fell 11.9%, while apparel prices plunged 11%, the government report showed.

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