The latest data released on the U.S. August consumer price index (CPI) shows signs of a slowdown in the inflation cooling process. The data indicates that the August CPI rose by 2.9% year-on-year, slightly above market expectations. The core CPI (excluding food and energy) increased by 3.1% year-on-year. From a month-on-month perspective, the overall CPI rose by 0.4%, higher than July's 0.2%, indicating that price pressures still exist.

This report may have an impact on the Federal Reserve's policy-making. Although the market had previously anticipated a rate cut within the year, the slower-than-expected decline in inflation may lead decision-makers to be more cautious when adjusting policies.

As a result of this news, the financial markets have experienced volatility. U.S. Treasury yields and the dollar index have fluctuated in the short term. At the same time, cryptocurrency and U.S. stock investors should also closely monitor the Federal Reserve's future policy statements and specific actions to assess their potential impact on the market.

This inflation data reveals the complexity of the economic recovery process, reflecting that inflationary pressures still exist. Investors and policymakers will need to carefully weigh the balance between economic growth and price stability in order to formulate appropriate strategies and policies.