Consumer inflation rose 2.5% year-on-year in August, down sharply from 2.9% in July.

However, core CPI (excluding food and energy) rose 0.3% on the month, slightly higher than the 0.2% estimate, mainly due to rising housing costs.

Even so, overall inflation fell sharply and posted a fifth consecutive monthly decline.

The first rate cut since 2020 is almost certain next week, the question now is whether the Fed will do more.

Initial reaction: Gold, US stock futures and Bitcoin all fell slightly on the news.