US consumer prices slow in August

WASHINGTON. US consumer prices slowed in August as some of the inflation pressures caused by the havoc of the Covid-19 pandemic showed signs of easing, according to government data released Tuesday.

Spiking prices for gasoline and food, including beef, remain a political vulnerability for President Joe Biden.

But with other prices starting to pull back, the Federal Reserve can take comfort heading into next week’s policy meeting that it will not need to rush to tighten monetary policy.

The consumer price index (CPI) rose just 0.3 per cent compared to July, while the annual rate eased to 5.3 per cent, the Labour Department reported.

Excluding volatile food and energy prices, “core” CPI rose just 0.1 per cent, the report said.