The Brief

Inflation rose again last month amid a weakening job market, two trends that would require opposite actions from the Federal Reserve to address.

The price of gas, groceries, hotel rooms and airfares rose, along with the cost of clothes and used cars. It’s the last measure the Fed will see before its board of governors meets next week and likely cuts the short-term interest rate.

Consumer Price Index for August 2025

By the numbers:

Overall, consumer prices increased 2.9% in August compared to the same month last year, according to the Labor Department. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the Federal Reserve’s 2% target.

On a monthly basis, overall inflation accelerated, as prices rose 0.4% from

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