US headline CPI rose to 2.9% year-over-year, up from 2.7% in July - in line with expectations and the highest level since January. Core CPI was at 3.1% year-over-year, unchanged from July.

Treasury yields were falling Thursday after a fresh reading from the consumer-price index showed core inflation rose last month in line with expectations. The yield on the 10-year Treasury note was down about 4 basis points at around 4.

Tariffs continued to push up prices and squeeze household budgets in August, if forecasters are right about this week's highly anticipated inflation report.

Core services, which dominate the inflation index and include many of the essentials that consumers cannot do without, rose by 4.3% annualized in August.

President Donald Trump this week declared on Truth Social that there’s “No Inflation!!!” But Consumer Price Index data released Thursday tells a different story.

Inflation continued to crunch budgets in August as tariffs pushed up prices on groceries and other household items.

With August data for both the CPI and the producer price index proving fairly soft for August, economists expect the Fed’s preferred inflation gauge to remain unchanged at the next reading. Economists for Citi expect that the core personal consumption expenditures price index will increase 0.