US Core CPI Rises as Expected, Keeping Fed on Track for Rate Cut

Underlying US inflation rose as expected in August, keeping the Federal Reserve on track to cut interest rates next week.

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NEW YORK -

The core consumer price index (CPI), excluding the volatile food and energy categories, increased 0.3 per cent from July, according to Bureau of Labor Statistics (BLS) data out on Sept 11. When incorporating those components, the overall CPI rose 0.4 per cent, the most since the start of the year.

The prices of goods, excluding food and energy commodities, accelerated. That reflected price increases in new and used cars, apparel and appliances. Within services, airfares surged the most in over three years. Several household expenses also picked up, including groceries, petrol, electricity and car repairs.

The report suggests inflation continues to linger. President Donald Trump's global tariffs are impacting prices of some goods, while ongoing increases in services costs may present a more persistent pressure to overall inflation.