Inflation rises 2.5% in August, less than expected

Published On Sep 11, 2024, 4:33 AM

Inflation in the U.S. rose by 2.5% in August year-over-year, which is lower than expected and marks the slowest increase in over three years. The consumer price index (CPI) increased by 0.2% from the previous month, supporting expectations that the Federal Reserve will likely cut interest rates in its upcoming meeting. Core prices, which exclude volatile categories like food and energy, saw a 0.3% increase, slightly higher than predictions. The report indicates that while inflationary pressures are easing, they still remain above the Fed's 2% target, causing ongoing challenges for many households.