In August, inflation eased once again, dropping to its lowest mark in three years and reinforcing expectations that the Federal Reserve will cut interest rates for the first time since early in the pandemic, The Washington Post reports.
Data released Wednesday by the Bureau of Labor Statistics shows prices climbed 2.5% in the 12 months ending in August, a noticeable improvement over the 2.9% notched in July, partly because of falling gas prices.
Inflation has decreased significantly from its peak of 9.1% two years ago, yet prices remain elevated, impacting households and businesses.
The Fed is poised to lower rates in its upcoming meeting, possibly by a quarter-point or a more substantial half-point, influenced by recent job market trends and inflation progress.
This shift reflects a balancing act between controlling inflation and supporting employment, signaling a potential easing of economic pressures.
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