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Consumer prices rose 2.5% in August from a year ago, the smallest annual increase since early 2001. Grocery prices have largely leveled off after climbing sharply in the previous two years, but the cumulative increases continue to sting many consumers.
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Consumer prices in August were up 2.5% from a year ago — the smallest annual increase since February 2021. Falling inflation clears the way for the Federal Reserve to start cutting interest rates next week — likely by a quarter percentage point.
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