Thu, 11 Sep 2025

Thu, 11 Sep 2025 US inflation rises ahead of key interest rate decision

The pace of price rises ticked up as focus turns to the next move by the US Federal Reserve.

* US inflation rose 2.9% in August, up from 2.7% in July, which is the fastest pace since the beginning of the year.
* The increase in inflation was driven by rising costs for cars, household furnishings, and grocery staples such as tomatoes and beef.
* Despite the uptick in inflation, economists expect the Federal Reserve to cut interest rates next week, but the higher inflation rate may keep policymakers cautious about future rate cuts.
* President Donald Trump's tariffs are being blamed for contributing to the rise in prices, with some economists saying his policies are "gradually showing up" in economic data.
* The Labor Department reported that employers added just 22,000 jobs in August, and the unemployment rate ticked up from 4.2% to 4.3%.
* An underlying measure of inflation, which strips out volatile food and energy costs, held steady at 3.1% year-over-year in August.
* Economists expect a rate cut next week, but some are cautious about future rate cuts due to the rise in inflation.
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