In the year ending in August, consumer prices increased by 2.5% due to decreases in the cost of gasoline, used automobiles and trucks, and certain other commodities.
That pace, which was lower than 2.9% in July despite an unanticipated increase in housing expenses, was the smallest since February 2021.
The Labor Department data are released during a presidential campaign where one of the main concerns has been the rise in living expenses.
The statistics, according to analysts, raised the possibility that the Federal Reserve will lower interest rates by 0.25 percentage points at its meeting the following week, but it decreased the likelihood of a larger reduction.
Overall, inflation looks to have been contained, but it hasn’t been entirely defeated because housing inflation isn’t moderating as quickly as anticipated, according to Paul Ashworth, chief North American economist at Capital Economics.
According to the data, pricing pressure is lessening for essential home goods.
According to the survey, grocery prices, which were skyrocketing only a few years ago, remained steady from July to August and are up less than 1% from the previous year.
Another essential, the price of gasoline, has also decreased, falling by more than 10% from August 2023 and over the course of the month.
But the cost of other goods kept going up.
Prices increased 3.2% year over year, excluding food and energy, which have a tendency to vary and might mask underlying trends.
