August US Consumer Price Index Shows Continued Rising Trend, Led by Goods Prices

【August CPI Overview】 The US Department of Labor released August Consumer Price Index (CPI) data on September 11, 2025, showing a year-over-year increase of 2.9% (vs. 2.7% in July) and month-over-month increase of 0.4% (vs. 0.2% in July). The core index, excluding volatile energy and food prices, rose 3.1% year-over-year (unchanged from July) and 0.3% month-over-month (unchanged from July). Results were largely in line with market expectations, but inflationary trends continue. 【Energy Price Trends】 Energy prices turned positive for the first time in seven months, rising 0.2% year-over-year. Electricity costs have maintained high growth since April, rising 6.2% in August. This reflects increased power demand from the AI boom, as AI-related capital investment continues robustly, suggesting high growth may persist. 【Food and Goods Sectors】 Food prices accelerated to 3.2% (vs. 2.9% in July), driven by beef prices rising 13.9%. Core goods rose 1.5% (vs. 1.2% in July), with used cars climbing 6.0% and auto parts also increasing. Clothing prices rose 0.5%, accelerating from the previous month, suggesting tariff impacts on fall/winter inventory purchases. 【Monetary Policy Implications】 While the results confirmed continued upward pressure on goods prices, the increases remained within expected ranges, leading markets to believe this won't prevent Fed rate cuts at the September 17 FOMC meeting. Focus is shifting to the pace of rate cuts.