Summary
Consumer prices in the U.S. increased in August, with inflation reaching 2.9% compared to the previous year. The job market showed signs of slowing, as the number of people seeking unemployment benefits rose significantly. These trends pose challenges for the Federal Reserve as it considers interest rate cuts.
Key Facts
- Inflation increased by 2.9% in August from the previous year, according to the Labor Department.
- Core prices, which exclude food and energy costs, rose by 3.1%.
- The Federal Reserve's inflation target is 2%, and the current rate is above this target.
- Job growth slowed significantly, with only 22,000 new jobs added in August.
- The unemployment rate in August increased slightly to 4.3%.
- Weekly unemployment benefit claims rose by 27,000 to a total of 263,000.
- Gas, grocery, and airfare prices all saw significant increases from July to August.
- President Trump applied pressure on the Federal Reserve to cut interest rates, and a court ruled against his effort to fire Fed governor Lisa Cook.
