US inflation falls to 2.5% in August

US inflation fell to 2.5 per cent in August, setting the stage for the Federal Reserve to start cutting interest rates gradually at its meeting next week.

The latest annual consumer price index compared with July’s 2.9 per cent pace, and was marginally below the estimate of 2.6 per cent from economists polled by Reuters.

The inflation data marks one of the last major economic releases ahead of the Fed’s meeting on September 18 and paves the…