August Composite CPI Report Seals September Rate Cut: What Experts Say

A mixed CPI report for August keeps the Federal Reserve on track to cut interest rates at the Fed’s next meeting, with a quarter-point cut looking much more likely than a half-point cut in borrowing costs.

The August CPI rose 0.2% on a monthly basis, according to the report Bureau of Labor Statisticswhich matched economists’ estimates. However, the core CPI, which excludes volatile food and energy costs and is considered a better gauge of future prices, rose 0.3 percent. That beat expectations for a 0.2 percent rise and made markets somewhat jittery.