U.S. core CPI rises as expected, keeping Fed on track for rate cut

U.S. Federal Reserve Chairman Jerome Powell, left, talks with Board of Governors member Lisa Cook, right, during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. Photo by AP Photo/Mark Schiefelbein

Underlying U.S. inflation rose as expected in August, keeping the United States Federal Reserve on track to cut interest rates next week.

The core consumer price index, excluding the often volatile food and energy categories, increased 0.3 per cent from July, according to Bureau of Labor Statistics data out Thursday. When incorporating those components, the overall CPI rose 0.4 per cent, the most since the start of the year.

Goods prices, excluding food and energy, accelerated 0.3 per cent, matching the biggest climb since May 2023. That re