United States: Inflation falls to lowest level since February 2021 in August
Latest reading: Inflation came in at 2.5% in August, down from July’s 2.9%. August’s figure represented the weakest inflation rate since February 2021 and undershot market expectations. The deceleration was primarily driven by lower energy costs. However, inflation remained above the Fed’s 2.0% target.
Accordingly, the trend pointed down slightly, with annual average inflation coming in at 3.2% in August (July: 3.3%). Meanwhile, core inflation was unchanged, coming in at July’s 3.2% in August.
Finally, consumer prices increased 0.19% in August over the previous month, accelerating from July’s 0.15% increase.