Live Updates: Inflation Expected to Remain Subdued

Published On Sep 11, 2024, 6:14 AM

In August, the Consumer Price Index (CPI) increased by 2.5% year-over-year, the slowest pace in over three years, following July's 2.9%. The Federal Reserve is expected to implement its first interest rate cut in over four years due to these cooling inflation rates. However, core inflation, which excludes food and energy prices, rose to 3.2%, primarily due to persistent housing costs, which saw a slight uptick. The Fed is likely to proceed cautiously with rate cuts to avoid negatively impacting the job market. While overall inflation trends show improvement, stubborn housing costs complicate the situation, suggesting that the journey to 2% target inflation remains challenging.