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Inflation Hits 2.9%, Fed Cuts Rates Amid Rising Costs

10/13/2025

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Summary

Story summary

Inflation rose to 2.9% in August, up from 2.6% last year and above the Federal Reserve's 2% target.
This is the third increase in four months, signaling persistent inflation.
The Federal Reserve cut interest rates in September.
Tariffs imposed by President Donald J. Trump and the Trump administration, including 100% on pharmaceuticals and 50% on kitchen cabinets, have contributed to higher costs.

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Story summary

Inflation rose to 2.9% in August, up from 2.6% last year and above the Federal Reserve's 2% target.
This is the third increase in four months, signaling persistent inflation.
The Federal Reserve cut interest rates in September.
Tariffs imposed by President Donald J. Trump and the Trump administration, including 100% on pharmaceuticals and 50% on kitchen cabinets, have contributed to higher costs.