Inflation Rose Again in August; Core Data Remained Steady; What It Means for Fed's Rate Cuts

Inflation Rose Again in August; Core Data Remained Steady; What It Means for Fed’s Rate Cuts

September 11, 2025

Overall YoY: +2.9%, in line with expectations and up from +2.7% in July

Overall MoM: +0.4%, up from +0.2% in July

Core YoY: +3.1%, in line with expectations and flat from July’s rate

Core MoM: +0.3%, flat from July’s rate

Market reaction: Stocks flattened and Treasuries rallied after the CPI release and a report that showed a jump in jobless claims.

What it means for interest rates: Traders are upping their bets on 3 rate cuts this year.