U.S. consumer prices rose more than expected in August, but will not stop the Fed from cutting interest rates next week

Odaily Planet Daily News The U.S. CPI rose higher than expected in August and the annual inflation rate increased the largest in seven months, but these data are not expected to prevent the Fed from cutting interest rates next week due to weak job markets. Thursday's data showed CPI rose 0.4% in August after rising 0.2% in July. In the 12 months to August, CPI rose 2.9%, its biggest gain since January, with a 2.7% increase in July. The CPI report may raise concerns about stagflation following recent pessimistic news in the job market. The impact of President Trump's full tariffs is gradual, but prices may accelerate in the coming months as businesses have now run out of pre-tariff stocks. Business surveys have been hinting at the imminent rise in prices for some time. "There is a lot of evidence that more tariff-related inflation is coming, although it may take several months to fully transmit," said Stephen Stanley, chief economist at the U.S. capital markets at Santander Bank.