What Did The Latest CPI Report Reveal About U.S. Inflation

The U.S. consumer prices continued climbing in August, strengthening expectations that the Federal Reserve could raise interest rates next week, according to the Bureau of Labor Statistics.

The Consumer Price Index increased 0.4% for the month and 3.4% from a year earlier, matching forecasts. Core CPI, which excludes food and energy, rose 0.3% monthly, slightly above expectations, while the annual core rate stood at 2.4%.

The report said traders raised the probability of a quarter-point Fed rate hike to nearly 90%, according to CME Group data. The central bank has kept its benchmark rate between 3.5% and 3.75% throughout 2026.

Economists cited in the report said persistent inflation and renewed energy-price pressures could make it harder for policymakers to justify keeping rates unchanged.

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Inflation heated up in August, raising the chance of a Fed rate hikehttps://t.co/4oEjOWF1YX pic.twitter.com/Q1FzrfRd1j

— CNN (@CNN) September 11, 2026

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tippinsightsTIPP Staff