Inflation expected to have climbed in August as Fed weighs interest rate cut

Fresh inflation data to be released on Thursday will provide the latest look at price increases as some economists warn of a potential tariff-induced jump in household costs. The new report arrives days before the Federal Reserve is set to announce a widely expected quarter-point interest rate cut. A hotter-than-expected inflation reading could prompt Fed policymakers to put off slashing rates, while a lower-than-expected figure may nudge the central bank toward a larger half-point cut. Economists expect consumer prices to have climbed 2.9% over the year ending in August, which would mark a slight uptick from a 2.7% inflation rate recorded in the month prior. If the inflation reading matches economists’ expectations, price increases would remain below the 3% rate recorded in January, the m