The US annual inflation rate accelerated to 2.9% in August 2025, the highest since January, after holding at 2.7% in both June and July, in line with market expectations. Prices rose at a faster pace for food (3.2% vs 2.9% in July), used cars and trucks (6% vs 4.8%), and new vehicles (0.7% vs 0.4%). Also, energy cost increased for the first time in seven months (0.2% vs -1.6%). Prices for gasoline (-6.6% vs -9.5%) and fuel oil (-0.5% vs -2.9%) decreased less and the rise for natural gas prices remained elevated (13.8% vs 13.8%). Meanwhile, inflation steadied for transportation services (3.5% vs 3.5%) and slowed slightly for shelter (3.6% vs 3.7%).On a monthly basis, the CPI went up 0.4%, the most since January, above forecasts of 0.3%. Shelter rose 0.4% and made the largest upward pressure. On the other hand, core inflation remained steady at 3.1%, the same as in July and at February’s peak, while core CPI rose 0.3% month-on-month, matching July’s pace and market forecasts.