The consumer price index increased by 2.9% in August compared to the previous year, the forecasts of economists corresponded that prices would increase slightly while the prices of President Trump filled through the economy.
By figures
The IPC was to increase by 2.9% last month, according to economists interviewed by the financial data company FOTSET.
The ICC, a basket of goods and services generally bought by consumers, follows the price change on everyday items such as food and clothes over time. So far this year, inflation has remained at 3% or less, with July reading of July at 2.7%.
Despite this, inflation has crawled higher in recent months, moving away from the federal reserve 2% annual target. This means that some Americans feel more bitter with regard to the economy, with a CBS News Survey Noting that two -thirds of consumers have said that prices in the past few weeks have continued to increase.
What economists say
Some economists highlight the large -scale prices from the Trump administration prices. Indeed, American companies pay for import rights to the federal government, then transmit some of these costs to consumers in the form of more expensive goods.
Until now, in 2025, the federal reserve has kept the reduction rates due to the prices potential to rekindle inflation. Because rate reductions make you cheaper to borrow, they can encourage companies and consumers to open their portfolios, adding to inflationary pressures.
Yet with the labor market showing signs of tensionThe president of the Fed, Jerome Powell, said last month that the door could be Open for a rate drop During the September 17 meeting of the Central Bank. Reduction rates can stimulate hiring by making companies cheaper to borrow, and therefore easier to develop and add employees.
As part of the so-called “double mandate” of the Fed, the central bank is required to promote full employment while keeping inflation under control.
Despite the increase in inflation, the FED is probably still on the right track for a drop in rates next week, said Seema Shah, a global strategist for the management of main assets, noting that the lowest employment data will probably prevail over higher prices.
“Although the IPC report is a little warmer than expected, it will not give the Fed a moment of hesitation when they will announce a rate drop next week,” she said in an email.
What becomes more expensive
Some items become more expensive are largely imported products, such as coffee, which climbed 21.7% compared to a year ago, and furniture, which increased by 4.7%. Imports are subject to American prices based on the country of origin, the Trump administration adding new tasks that start at 10% and lie down.
“There were once again some signs of pricing effects exercising upward pressure on goods prices,” noted the capital economy in a research note, indicating higher costs for household appliances and other domestic products.
Daily costs have also increased at a faster rate, food prices increasing by 3.2% compared to a year ago, widely fired by higher restaurant prices, according to data.
These pressures are felt by many consumers, some indicating to CBS News that their expenses have only increased over the past year. Some say they reduce discretionary expenses to increase household costs.
“Everything overall is more expensive – my races for example – and I hope that things that are on sale. I plan everything we are going to have for the week, “Kali Daugherty said 40, executive director of a non -profit organization in Milwaukee, Wisconsin.
She said that she spent about $ 275 at $ 300 every two weeks for the grocery store for her family, compared to around $ 175 at $ 200 a year ago. “There is no more room for maneuver,” she added.