August CPI is expected to reflect slower inflation

Published On Sep 10, 2024, 3:54 PM

In August, consumer prices in the U.S. rose at their slowest annual pace since early 2021, with the Consumer Price Index (CPI) increasing by 2.5%. This marks a decrease from July's 2.9% increase. Monthly, prices remained unchanged while core inflation (excluding food and energy) rose 0.3% month-over-month and 3.2% year-over-year. Despite easing inflation metrics, the Federal Reserve is likely to adopt a cautious approach to rate cuts, with a strong possibility of a 0.25% reduction by the end of their September meeting, responding to mixed economic signals, including a weak job market.