Consumer prices rise at slowest pace since early 2021

Published On Sep 11, 2024, 9:23 AM

A recent report highlights that U.S. inflation, as measured by the Consumer Price Index (CPI), rose 2.5% annually in August, the slowest rate in three years. This is a decrease from July's 2.9% increase and in line with economist expectations. The month-over-month increase was 0.2%. Core inflation, which excludes food and energy costs, rose 3.2% year-over-year. Most notably, rising shelter costs, which increased 5.2% annually, contributed significantly to inflation. The Federal Reserve is anticipated to cut interest rates soon, with market expectations shifting towards a smaller potential cut of 25 basis points rather than 50 basis points after this report. Overall, inflation remains above the Fed's 2% target, causing mixed reactions among economists about future Fed policy adjustments.