US inflation fell to 8.3% in August, dropping from 8.5% in July in the latest report on Tuesday.
The figure marks the lowest reading in four months, however it still beat market forecasts of 8.1%.
The result sent US futures tumbling as the figure confirmed fears the US Federal Reserve was set to remain on course with aggressive rate hikes.
The Dow Jones slid 1% to 32,166 in pre-open trading, with the S&P 500 falling 1.4% to 4,067.5 and the NASDAQ dropping 2.1% to 12,546.
The US energy index climbed 23.8%, decreasing from 32.9% in July as a result of a huge slowdown in gasoline expenses and fuel oil to 25.6% against 44% and 68.8% compared to 75.6%, respectively.
Meanwhile, natural gas costs rose to 33% from 30.5% and electricity prices accelerated at their fastest rate since August 1981 by 15.8%.
Food inflation grew 11.4%, while shelter rose 6.2% from 5.7% and used cars and trucks inflation climbed 7.8% from 6.6%.
Consumer prices increased 0.1% since July following a flat reading the month before, exceeding analyst expectations of a 0.1% fall.
