Inflation shoots higher as Trump tariffs ripple through economy

The Ministry of Labor said on Tuesday, consumer prices increased by 2.9 % in August of the previous year, an increase of 2.7 % in the previous month and the largest increase since January. With the exception of the flying food and energy categories, the basic prices increased by 3.1 %, as in July. Both numbers are 2 % higher than the Federal Reserve.

Reading is the latest data that the Fed Bank will receive before its main meeting next week, when it is expected that the policymakers are expected to reduce about 4.1 % from 4.3 %. However, the figures confirm the challenges faced by the Federal Reserve during its experiments Unimaginable From President Donald Trump to reduce prices.

Even with high inflation, recent government reports also showed that employment Summ sharply in recent months Be Less than previously estimated last year. The unemployment rate in August was released to 4.3 % still. Weekly unemployment claims increase sharply last week, signs may be captured.

The Federal Reserve usually reduces its main rate when unemployment has risen to stimulate more spending and growth. However, this will do the opposite and raise rates – or at least keep them unchanged – in the face of increased inflation. Last month, President Jerome Powell pointed out that federal reserve officials are increasingly concerned about jobs, and they are likely to reduce their rate when they meet next week. However, high -enlargement can prevent stubborn feeding from cutting very quickly.

On a monthly basis, the total Inflatin accelerated, as prices increased by 0.4 % from July to August, faster than 0.2 % of the pace in the previous month. The basic prices increased by 0.3 % for the second month in a row.

This is the update of urgent news. Follow the previous AP story below.

Washington (AP) – The United States is likely to be higher last month with the Trump administration Import taxes The price of goods was raised, and the federal reserve may be placed in a difficult place when it meets next week.

Economists expect that consumer prices rose by 2.9 % in August of the previous year, according to economists surveyed by the FactSet data provider. This will be an increase of an annual pace of 2.7 % in July. With the exception of the costs of food and volatile energy, the basic inflation is expected to increase by 3.1 %, as in July. Both numbers are 2 % higher than the Federal Reserve Element.

Possible increases, although modest, would confirm the challenges faced by the Federal Reserve during their experiences Unimaginable From President Donald Trump to reduce the short -term interest rate. Trump hopes that price cuts will stimulate more borrowing, spending and enhance the economy.

Modern government reports showed that employment Summ sharply in recent months Be Less than previously estimated Last year, there is a sign that companies may be concerned about future sales and less interested in adding employees. The unemployment rate in August was released to 4.3 % still.

The Federal Reserve usually reduces its main rate when unemployment has risen to stimulate more spending and growth. However, this will do the opposite and raise rates – or at least keep them unchanged – in the face of increased inflation. Last month, President Jerome Powell pointed out that federal reserve officials are increasingly concerned about jobs, and they are likely to reduce their rate when they meet next week. However, high -enlargement can prevent stubborn feeding from cutting very quickly.

On a monthly basis, prices are expected to rise at an accelerated pace, which increased by 0.3 % from July to August. The basic prices are expected to increase by 0.3 % on a monthly basis. The cost of grocery and gas is expected to rise last month.

However, Powell suggested in notes in August that the definitions could simply lead to an increase in prices for one time, rather than continuous inflation. If so, this would make it easier for the Federal Reserve to continue to reduce its main rate. Wall Street investors from the Federal Reserve expect to implement three discounts this year, according to the prices of futures contracts that have been followed by CME Fedwatch.

The inflation data arrives at the same time that Trump sought Lisa Cook Governor Governor Lisa Cook As part of an attempt to confirm more control of the Federal Reserve. After Tuesday, the court said The shooting was illegal She decided that Cook could keep her job while the conflict was in the courts.

Fortune Global Forum Returns 26 to 27 October, 2025 in Rydah. Executive chiefs and world leaders will meet for a dynamic event for the call only forms the future of business. Apply for an invitation.