US consumer inflation hits highest level since January but unlikely to deter rate cut
The consumer price index picked up to 2.9 per cent in August, accelerating from 2.7 per cent on a year-on-year basis in July
US consumer inflation rose last month to its highest level since January, government data showed on Thursday, although analysts believed that this would not deter the central bank from an interest rate cut next week.
The data also underscored cost-of-living pressures on households as President Donald Trump’s tariffs filter through the world’s biggest economy, complicating the Federal Reserve’s role in maintaining stable prices.
The consumer price index (CPI) picked up to 2.9 per cent in August, accelerating from 2.7 per cent on a year-on-year basis in July, the Labour Department said.
The figure was in line with analysts’ expectations, as economists try to gauge if Trump’s duties will trigger a one-off price increase or lead to persistently higher costs.
On a month-on-month basis, CPI rose 0.4 per cent in August, the report said, also picking up from 0.2 per cent in July.
A measure of underlying inflation, stripping away the volatile food and energy components, was up by 3.1 per cent from a year ago.