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.

The core consumer price index, excluding the often volatile food and energy categories, increased 0.3% from July, according to Bureau of Labor Statistics data out Thursday. When incorporating those components, the overall CPI rose 0.4%, the most since the start of the year.

Goods prices, excluding food and energy, accelerated 0.3%, matching the biggest climb since May 2023. That reflected increases in new and used cars, apparel and appliances, which some economists pointed out as possible ...