(The Center Square) – U.S. stocks plummeted Tuesday after the federal government reported another sharp rise in food and other prices in August despite falling gas prices.

The S&P 500 dropped 4.3%, its largest single day decline since June 2020 during the height of the pandemic. The Nasdaq Composite index fell 5.2%, also its worst day since June 2020. The Dow Jones Industrial Average dropped nearly 4% to 31,105.

The Bureau of Labor Statistics released its Consumer Price Index Tuesday that showed the inflation rate at 8.3% in August over a year prior. With gas prices dropping, analysts expected the inflation rate to be 8.1%.

“Increases in the shelter, food, and medical care indexes were the largest of many contributors to the broad-based monthly all items increase,” BLS said, as The Center Square reported earlier Tuesday. “These increases were mostly offset by a 10.6-percent decline in the gasoline index. The index for all items less food and energy rose 0.6 percent in August, a larger increase than in July.”