WASHINGTON: US consumer inflation likely picked up in August as the cost of gasoline rose and tariffs on imports raised some goods prices, but the pace of increase would probably not be strong enough to derail a much-anticipated interest rate cut from the Federal Reserve next week.
The Consumer Price Index (CPI) report from the Labor Department's Bureau of Labor Statistics (BLS) on Thursday could still fan concerns of stagflation following recent downbeat news on the labor market. The pass-through from President Donald Trump's sweeping tariffs has so far been gradual, but economists expected that could soon change. They noted businesses had depleted their pre-tariff inventory. Business surveys have for some time been signaling imminent price increases. — Reuters
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