#CPIWatch The Consumer Price Index (CPI) is a crucial economic indicator that measures inflation. Here are some key points to consider :

Current Inflation Rates: As of August 2025, the CPI inflation rate stands at 2.84% year-over-year, while the core CPI inflation rate is slightly higher at 3.05%. Month-over-month, CPI increased by 0.30% and core CPI by 0.25%.

Inflation Trends: The Federal Reserve Bank of Cleveland provides daily nowcasts of inflation, which can help predict future inflation trends. According to their data, the CPI and core CPI are expected to remain stable in the coming months.

Factors Influencing Inflation: Several factors contribute to inflation, including:

Tariffs and Trade Policies: The ongoing trade tensions and tariffs imposed by the US government may lead to higher prices for imported goods, contributing to inflation.

Wage Growth: Strong wage growth can lead to increased production costs, which may be passed on to consumers, fueling inflation.

Energy Prices: Fluctuations in energy prices can impact inflation, as energy is a significant component of the CPI basket.

Impact on Economy: Inflation can have both positive and negative effects on the economy. Moderate inflation can stimulate economic growth, while high inflation can erode purchasing power and reduce the standard of living.

To stay up-to-date with the latest CPI data and inflation trends, you can visit the Bureau of Labor Statistics (BLS) website or the Federal Reserve Bank of Cleveland's inflation nowcasting page.