by Akiko Fujita
Yahoo! Finance
US inflation came down in line with expectations in August. The Consumer Price Index, a measure of goods and services across the country, rose 0.2% from July to August, a 2.5% gain from the same period a year ago. Core prices, which exclude the costs of food and energy, were up 0.3% month over month.
The latest data keeps the Federal Reserve on track for a September interest rate cut as the central bank inches closer to its inflation target of 2% over the long run.
“The time has come for policy to adjust,” Fed Chair Jerome Powell said at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyo., in August. Powell added that “the direction of travel is clear,” although he did not elaborate on how significant that rate cut would likely be.