U.S. Consumer Prices Inch Up in August Amid Persistent Inflation

In August, U.S. consumer prices rose slightly, influenced by higher rents and some services, though underlying inflation remained sticky. The Labor Department's data comes ahead of a Federal Reserve meeting where a quarter-point interest rate cut is expected, reflecting mixed economic signals amid cooling labor market conditions.

In August, U.S. consumer prices edged up slightly, due to increased rents and some services costs, but underlying inflation remained persistent. This data from the Labor Department arrives ahead of a Federal Reserve meeting, likely leading to a quarter-point interest rate cut.

Labor market conditions showed mixed signals, with a decline in unemployment rates but below-expectation nonfarm payroll increases. These economic indicators have led financial markets to revise their outlook on upcoming rate cuts.

The consumer price index (CPI) rose 0.2% in August, consistent with July's increase. Excluding food and energy, core inflation climbed 0.3%, driven by higher shelter costs, which offset declines in used car prices and other sectors. Annual consumer price growth slowed to 2.5%, the smallest rise since February 2021.

(With inputs from agencies.)