FX.co ★ US Inflation Rate Expected to Accelerate, Core Steady

The United States' annual inflation rate is anticipated to increase to 2.9% in August 2025, marking the highest level since January, following a steady rate of 2.7% from June through July. On a monthly basis, the Consumer Price Index (CPI) is forecasted to rise by 0.3%, which is a slight uptick from the 0.2% growth recorded in July. This acceleration is likely due to retailers gradually passing on the increased import tariffs to consumers, coupled with rising costs for gasoline and groceries. Conversely, a decrease in rental prices is expected. Core inflation, which excludes the volatile categories of food and energy, is predicted to hold steady at 3.1%, consistent with both July's rate and the peak rate observed in February. Core CPI is expected to edge up by 0.3% month-over-month, mirroring the pace set in July.