US inflation softens to lowest level since February 2021 as Fed prepares to cut interest rates

Price growth continued to soften in the US last month, falling to its lowest level since February 2021 as the Federal Reserve prepares to cut interest rates for the first time since the start of the pandemic.

As inflation continues to fade, the consumer price index rose at an annual rate of 2.5% in August – down from 2.9% in July, and below the 2.6% expected by economists.

On a month-to-month basis, the index rose 0.2% last month, in line with its rate of growth during July.