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Inflation in the U.S. hit a three-year low in August, further opening the door to the Federal Reserve to start cutting its key interest rate next week, according to government data released Wednesday.
Year-over-year inflation slowed to 2.5% last month, according to the Bureau of Labor Statistics, the lowest such rate since March 2021. And excluding volatile food and energy prices, core inflation is believed to have remained unchanged at 3.2%.
Inflation peaked at 9.1% in June 2022 — a four-decade high — as the economy rebounded from the pandemic recession.
—This is a developing story.