U.S. consumer prices experienced their largest increase in seven months in August due to rising housing and food costs. Despite this inflation, a surge in weekly jobless claims suggests the Federal Reserve will likely proceed with an interest rate cut next Wednesday.

• The Consumer Price Index (CPI) rose 0.4% in August, the biggest gain since January.
• The Labor Department reported that initial claims for state unemployment benefits jumped by 27,000 to 263,000 for the week ended September 6, the highest level since October 2021.
• The year-on-year CPI advanced 2.9% through August, the largest increase since January, potentially fueling fears of stagflation as businesses pass on costs from President Donald Trump's tariffs.