US inflation fell to 2.5 per cent in August, setting the stage for the Federal Reserve to start cutting interest rates at its meeting next week.
The latest annual consumer price index compared with July’s 2.9 per cent pace, and was marginally below the estimate of 2.6 per cent from economists polled by Reuters.
Core CPI, which excludes volatile food and energy prices held steady at 3.2 per cent, according to data published by the Bureau of Labor Statistics on Wednesday.
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