US inflation rises in August as firms pass Trump tariffs cost on to consumers

New CPI update shows prices increased 2.9% over the last year, but Wall Street optimistic Fed will cut interest rates

Inflation rose slightly in August as companies continued to push the cost of tariffs on to consumers.

The newest update to the consumer price index (CPI), which measures a basket of goods and services, showed that prices increased 2.9% over the last year - the highest since January. Core CPI, which excludes energy and food costs, stayed stable at 3.1% after going up in July.