US inflation rises to 2.9% in August in line with expectations

US inflation hits 2.9% in August, the highest since January 2025

US annual inflation rate accelerated in August, reaching its highest level since January, after holding steady at 2.7% in June and July.

The consumer price index posted a seasonally adjusted 0.4% increase for the month, double the prior month, putting the annual inflation rate at 2.9%, up 0.2 percentage point from the prior month and the highest reading since January.

Core inflation, which excludes volatile food and energy prices, rose 0.3% in August, as in July, driven by higher prices for airline tickets, used and new cars, and clothing.

The updated forecasts show that average inflation in the region will reach 1.7% next year, compared to the previous estimate of 1.6%, rising to 1.9% in 2027. The economy is expected to grow by 1.2% this year and by about 1% in 2026.

The energy index saw a monthly increase of 0.7%, with gasoline prices increasing by 1.9%, contributing to the monthly inflation rate.