US Inflation Falls to 2.5% in August

U.S. inflation dropped to a three-year low in August, with consumer prices rising 2.5% year-over-year, down from 2.9% in July. Core inflation, which excludes food and energy, held steady at 3.2%. This cooling trend supports expectations for the Federal Reserve to cut interest rates, likely starting with a quarter-point reduction next week. Meanwhile, Argentina's inflation rate also decreased to 4.2% in August, the lowest since 2022, following President Javier Milei's economic reforms. Despite the overall decrease, higher rents and service costs in the U.S. could temper the pace of future rate cuts. Financial markets have adjusted their expectations, factoring in a more gradual approach from the Fed.