Fed's favored inflation gauge shows cooling price pressures, clearing way for more rate cuts
A shopper examines large-screen televisions on display in a Costco warehouse Thursday, Sept. 19, 2024, in Lone Tree, Colo. (AP Photo/David Zalubowski)
WASHINGTON (AP) — The Federal Reserve's preferred inflation measure on Friday provided the latest sign that price pressures are easing, a trend that is expected to fuel further Fed interest rate cuts this year and next.
Prices rose just 0.1% from July to August, the Commerce Department said, down from the previous month’s 0.2% increase. Compared with a year earlier, inflation fell to 2.2%, down from 2.5% in July and barely above the Fed's 2% inflation target.
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