The US Consumer Price Index (CPI) for August 2025 showed inflation accelerating slightly, with the headline all-items index rising 0.4% month-over-month (MoM) on a seasonally adjusted basis and 2.9% year-over-year (YoY) unadjusted.
This marked the fastest annual pace since January 2025.
Core CPI, excluding food and energy, increased 0.3% MoM and 3.1% YoY.
The monthly headline rise exceeded economists' expectations of 0.3%.
Key category changes included:
Shelter: +0.4% MoM, continuing to drive inflation.
Food: +0.5% MoM (food at home +0.6%, away from home +0.3%).
Energy: +0.7% MoM, led by gasoline (+1.9%).
Notable increases: Airline fares (+5.9%), used cars/trucks (+1.0%), apparel (+0.5%).
Declines: Medical care, recreation, and communication indexes.
This data reinforces expectations for cautious Federal Reserve rate cuts amid persistent core pressures, though markets reacted positively with stocks rising.