Business & Finance

US annual inflation eased to 3.4% in August, falling below forecasts

Consumer prices rose slower than expected annually, though monthly inflation picked up slightly.

Updated Sep 30, 2026 · 16:32 UTC2 reports

The short version

US consumer prices rose 3.4% year-over-year in August, coming in lower than the 3.7% forecasted by economists.[ABC News · The Guardian]
On a monthly basis, prices climbed 0.3% in August, an increase from 0.1% in July.[ABC News]
Core inflation, which excludes volatile food and energy costs, rose 3% annually and 0.2% month-over-month.[ABC News]
Following the inflation report, financial traders reduced the perceived chance of an October interest rate hike to about 35%.[The Guardian]

Annual consumer prices increased 3.4% in August, coming in below economist predictions of 3.7%.[ABC News · The Guardian]
Monthly inflation rose by 0.3% in August, up from 0.1% in July.[ABC News]
Core inflation increased 3% from a year earlier and rose 0.2% from the prior month.[ABC News]
Following the data release, traders lowered the likelihood of an October rate increase from 45% to around 35%.[The Guardian]

Whether the Federal Reserve will raise interest rates in October remains uncertain, though traders reduced the probability following the release.[The Guardian]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.