Summary
Inflation went up in August, with grocery and gas prices seeing noticeable increases. The overall consumer prices rose 2.9% from a year ago, higher than the previous month. The Federal Reserve faces challenges in deciding interest rates as inflation continues alongside changes in tariffs.
Key Facts
- Consumer prices in August were 2.9% higher than the same time last year.
- Prices rose 0.4% between July and August 2025.
- Grocery prices in August increased by 0.6%.
- Gasoline prices went up by 1.9% in August.
- "Core" inflation, which excludes food and energy, was 3.1% for the past 12 months.
- President Trump raised tariffs on goods, which may have added to rising prices for imports like coffee and bananas.
- A federal court found many tariffs illegal, but they remain until the U.S. Supreme Court reviews them.
- The Federal Reserve might reduce interest rates despite ongoing inflation concerns.
