US inflation at lowest level in three years

Inflation in the US hit a three-year low in August, new data from the Bureau of Labor Statistics showed, slowing to 2.5%, marginally lower than the 2.6% analysts had predicted. Meanwhile, the consumer price index — a measure of the price of most goods and services — increased 0.2% in the same month, in line with expectations.

While inflation is cooling overall, the core consumer price index, which excludes more volatile price measures, rose, with the annual core inflation rate standing at 3.2%.

The report set the stage for the Federal Reserve’s meeting next week, where the central bank is expected to announce a 0.25% cut in the cost of borrowing.