CPI Report: US Inflation Cooled In August, Hits 3-Year Low

Inflation only rose 0.2 percent on a seasonally adjusted base in August in the United States according to data released on Wednesday.

Annual inflation slowed to 2.5% in August, below a forecasted 2.6%.

The U.S. Bureau of Labor Statistics released the final Consumer Price Index Summary days ahead of an expected rate cut by the central bank.

The survey showed that housing costs rose 0.5 percent in August and was the main factor in the increase.

The all items index rise of 2.5 percent for the 12 months ending August was the smallest 12-month increase since February 2021.

Indexes that increased in August include shelter, airline fares, motor vehicle insurance, education, and apparel.

The indexes for used cars and trucks, household furnishings and operations, medical care, communication, and recreation were among those that decreased over the month.

The all items less food and energy index rose 3.2 percent over the last 12 months. The energy index decreased 4.0 percent for the 12 months ending August. The food index increased 2.1 percent over the past year.