The inflation crisis may be over and here’s the evidence

The nation’s battle with inflation may be over, as the latest numbers from the Bureau of Labor Statistics show that the Consumer Price Index only rose by 0.2% in August.

According to the latest report, in the 12 months through August, the CPI rose 2.5%, down from the 2.9% seen in July. This marks the smallest annual increase reported by the BLS since 2021, when prices first began to spike.

The data now all but guarantees that the Federal Reserve will be cutting interest rates at this month’s meeting, though it is yet to be seen whether they will do so by a quarter or half percent.

While the CPI rose by 0.2%, the gauge that excludes food and energy, also known as core CPI, rose by 0.3% in August. In the year ending in August, core CPI rose by 3.2%, the same as it did in July.

Among the areas to see prices fall included car, truck, and furniture costs. On the flip side, rent, car insurance, and airline fees all increased.

The Federal Reserve is scheduled to meet on Sept. 17 and 18, and Fed chair Jerome Powell is expected to announce the rate cut then.

But the relief won’t stop here, as the bank has said if numbers continue in their current trajectory, more rate cuts could come at the end of this year.

Bankrate’s Greg McBride doubled down on this while speaking with Audacy last week .

“But, you know, the point I would stress is, regardless of whether it’s a quarter or half, this is just the first of what’s going to be a series of rate cuts through the balance of this year through March or all of 2025,” McBride said. “So yeah, what we get here in 2024 is probably going to be the appetizer.”