US EditionInflation Heats up as Fed Faces Pressure From Trump, Labor Market to Cut Rates
The Consumer Price Index rose 2.9% year-on-year in August, driven by tariffs impacting key sectors, while the Federal Reserve plans a 25 basis points rate cut in September.
- The US Consumer Price Index rose 2.9 percent in August, marking its highest level this year since January and reflecting increased inflation.
- This rise follows economists' expectations of accelerated price hikes partly driven by tariffs imposed since President Donald Trump's return this year.
- Core CPI inflation, which excludes food and energy prices, rose 3.1 percent year-over-year, exceeding the central bank's inflation goal of 2 percent amid signs of weakening employment conditions.
- Nationwide's chief economist Kathy Bostjancic said the Fed is poised to cut rates next week regardless of CPI figures, with the degree of inflation influencing the pace of cuts.
- Investors broadly expect the Fed to reduce the benchmark rate by 25 basis points at the September 16-17 meeting, driven by signs of weakening conditions in the labor market despite persistent inflation pressures.
75 Articles
75 Articles
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Spetember 11, 2025 U.S. inflation accelerated in August at a speed that is likely to keep the Federal Reserve cautious about lowering borrowing costs too quickly once it restarts cuts as soon as next week. The Consumer Price Index, released on Thursday by the Bureau of Labor Statistics, rose 2.9 percent compared with the same time last year, the fastest annual pace since the start of 2025. “Core” inflation, which the central bank tracks as a gau…
Consumer prices in the United States rose by almost 3% year-on-year in August, even though the rise in tariffs has not yet made its full inflationary effect.
Inflation accelerates as Fed prepares for rate cut decision
Inflation rose last month as the price of gas, groceries, and airfares jumped, while a measure of layoffs also increased, putting the Federal Reserve in a tough spot as it prepares to cut rates at its meeting next week despite persistent price pressures.
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