The annual inflation rate in the United States rose to 2.9% in August, up from 2.7% in July, according to the Department of Labor Statistics (DLS) report released on Thursday. The figure matched market expectations and highlights ongoing price pressures despite a broader moderation over the past year.
On a month-on-month basis, the Consumer Price Index (CPI) increased 0.4%. The report showed that food prices grew 0.5% from July, while energy prices advanced 0.7%. Compared to the same month last year, the food index rose 3.2%, and the energy index edged up 0.2%.
The core CPI, which excludes food and energy, climbed 0.3% month-on-month and 3.1% year-on-year, broadly in line with forecasts.
The latest numbers come just days ahead of the Federal Reserve’s policy meeting on September 17, where officials are expected to resume rate cuts. Traders remain divided on whether the Fed will deliver a standard 25 basis point reduction or opt for a larger move in response to the inflation print and a recent uptick in jobless claims.
