London Daily

Focus on the big picture.
Sunday, Aug 31, 2025

US inflation rate drops to 5% - its lowest level in two years

US inflation rate drops to 5% - its lowest level in two years

While the overall rate of inflation decreased in the US, core inflation - excluding food and energy prices - rose. The US central bank is expected to raise interest rates up again next month.
The pace of price rises in the US has eased faster than expected.

The consumer prices index (CPI) measure of inflation fell to 5% in the 12 months to March, the lowest level in nearly two years and down from 6% in the year to February.

The rate of inflation in the US is now less than half that of the UK. Latest official figures showed the speed of price rises in the UK accelerated to 10.4%.

Inflation is also lower than the UK in the 20 countries which have the euro as currency. Here, inflation dropped for the fifth month in a row - to 8.5% in February.

But the uptick in US core CPI - inflation excluding the price sensitive food and energy sectors - means the US central bank, known as the Fed, is still expected to put interest rates up again next month. This will make borrowing more expensive.

The Fed has been consistently increasing interest rates in an effort to bring inflation down to its 2% target despite the March 2023 banking crisis.

Higher interest rates were one of the factors in last month's collapse of Silicon Valley Bank and the attendant banking crisis which saw two other US banks collapse and Swiss rival banks Credit Suisse and UBS forcibly merged.

Following Wednesday's announcement from the US Bureau of Labor Statistics the dollar value fell and the pound value shot to the highest point in nearly a week. At one point on Wednesday afternoon £1 was worth $1.2475.

The FTSE 100 index of the most valuable companies listed on the London Stock Exchange also jumped by 0.62% in the aftermath.
Comments

Oh ya 2 year ago
BS. Core inflation? The average person cares about everyday inflation they see at the grocery store and gas pumps.. The value of the USD is dropping at 2 % a month. This story is like lipstick on a pig

Newsletter

Related Articles

0:00
0:00
Close
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
×