The U.S. economic system noticed an uptick in its August CPI determine from 2.7% year-on-year to 2.9% as anticipated whereas the core model of the report additionally got here according to consensus, in keeping with information launched by the Bureau of Labor Statistics.

On a month-to-month foundation, the headline CPI rose 0.4% in August 2025, marking the most important month-to-month enhance since January. The studying exceeded economist expectations of 0.3% and highlighted persistent worth pressures throughout a number of sectors.

Key Takeaways

• Headline CPI: Rose 0.4% month-over-month, up from 0.2% in July; annual fee climbed to 2.9% from 2.7%
• Core CPI: Elevated 0.3% month-to-month, matching July’s tempo; yearly fee ticked larger to three.1% from earlier 2.8%
• Shelter dominance: Housing prices rose 0.4% and accounted for the most important contribution to the month-to-month enhance
• Meals costs surge: Meals index jumped 0.5% after remaining flat in July, with grocery costs climbing 0.6%
• Power beneficial properties: Power prices superior 0.7% following a 1.1% decline in July, pushed by 1.9% gasoline worth enhance
• Service sector energy: Core companies excluding housing continued upward momentum with broad-based will increase

Hyperlink to official U.S. Shopper Worth Index (August 2025)

Whereas earlier months confirmed restricted tariff pass-through to client costs, August’s report suggests trade-related worth pressures could also be gaining traction.

A number of import-sensitive classes together with attire, used automobiles, and family furnishings confirmed significant will increase, although analysts observe these results stay contained in comparison with earlier projections.

The shelter part, representing over one-third of the core CPI basket, continues to drive inflation momentum. Homeowners’ equal lease climbed 0.4% month-to-month, whereas main residence lease elevated 0.3%. Nonetheless, current information from real-time lease trackers suggests this stress could reasonable in coming quarters.

Market Reactions

United States Greenback vs. Main Currencies: 5-min

Overlay of USD vs. Main Currencies Chart by TradingView

The Dollar, which was cruising barely larger main as much as the U.S. CPI launch, dipped upon seeing the numbers merely come largely according to expectations. It seems the outcomes barely dented dovish Fed expectations, with the CME FedWatch instrument suggesting a 92.5% likelihood of a fee reduce later this month versus the pre-CPI chance of 91.1%.

USD sustained its decline within the hours that adopted, chalking up its steepest losses to commodity currencies AUD (-0.69%) and NZD (-0.77%). The greenback additionally stayed within the purple in opposition to the European currencies till the tip of the New York session whereas limiting losses in opposition to JPY (-0.19%) and CAD (-0.28%).