US Inflation figures moved towards 2.9% YoY in August, driven by the price of gas, groceries, hotel rooms and airfare, along with the cost of clothes and used cars.
Consumer prices rose 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July.
These figures are well above the Federal Reserve’s 2% target as policymakers prepare for its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. The unemployment rate also ticked up in August to a still-low 4.3%. And weekly unemployment claims rose sharply last week, a sign layoffs may be picking up.
On a monthly basis, overall inflation accelerated, as prices rose 0.4% from July to August, faster than the 0.2% pace the previous month. Core prices rose 0.3% for the second straight month.
