US inflation drops further making rate cut likely

Published On Sep 11, 2024, 9:05 AM

Inflation in the US has moderated, with consumer prices rising 2.5% year-over-year as of August. This marks a decrease from 2.9% in July and is the slowest pace since February 2021. Despite rising housing costs, prices for essential items like petrol and used cars have declined. Analysts expect the Federal Reserve may cut interest rates by 0.25 percentage points next week, but ongoing inflation in services might prevent more aggressive cuts in the future. Overall, while inflation pressures are easing, concerns persist about the stability of various costs, especially in housing and services.