The latest U.S. Labor Department data shows annual inflation cooled to 3.2% in August, easing pressure on the Federal Reserve to hike interest rates further. However, food and housing costs remain stubbornly high, continuing to pinch household budgets.
Analysts note that while energy prices fell, grocery bills are still up by nearly 5% compared to last year. President Joe Biden welcomed the slowdown but acknowledged that “families are still feeling the burden of everyday costs.”
For global markets, the development signals stability in the U.S. economy, which influences trade, investment, and currency flows across Asia and Europe.