Inflation rises to 2.9% year-over-year in August, in line with expectations
The consumer price index (CPI) rebounded in August from 2.7% in July in the year-over-year measurement. The figure was in line with analysts' expectations, while the effects of tariffs have not had the impact that experts expected.
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Inflation stood at 2.9% in August, its highest level since January, according to official data released Thursday. However, analysts believe this is unlikely to prevent the Federal Reserve from cutting interest rates.
The consumer price index (CPI) rebounded to 2.9% in August from 2.7% in July in the year-over-year measure, according to the Labor Department. The figure was in line with analysts' expectations, while the effects of the tariffs have not had the impact that experts expected.
According to the Office of Labor Statistics, at the monthly rate, the CPI rose by 0.4%, up from 0.2% in July and above forecasts of 0.3%.
The housing index rose by 0.4% and exerted the most upward pressure. Core inflation, which excludes food and energy, held steady at 3.1%, unchanged from July and the February peak, while the underlying CPI rose 0.3% month-on-month, matching July's pace and market forecasts.
Interest rate cut
This would be its first rate cut since December, after months of pressure from Trump.
Authorities have kept rates unchanged this year while monitoring the effects of tariffs on inflation.
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