U.S. headline consumer price growth accelerated in August, but the increase was largely in line with expectations, reinforcing market conviction that the Federal Reserve will move ahead with an interest rate cut at its upcoming policy meeting.

Headline CPI

• Annual CPI: 2.9% (vs. 2.7% in July, matching forecasts)
• Monthly CPI: +0.4% (vs. +0.2% in July, slightly above +0.3% expectations)

The pickup indicates price pressures remain elevated, though not enough to derail market bets for monetary easing.

The figures come just days ahead of the Fed’s September 16–17 meeting, where investors are fully pricing in at least a 25-basis-point cut, with some speculation of a larger 50-bps move.

Sticky price gains highlight the Fed’s challenge of balancing inflation control against mounting signs of labor market weakness. The latest CPI release keeps the spotlight firmly on the Fed’s dual mandate, with risks skewed toward further easing to support growth.