| Economy watchers long had today’s inflation data release circled on their calendars. But, as Enda Curran writes, a different number announced this morning might be more consequential. Plus: The chaos at the CDC is intensifying, and how fish DNA became a beauty sensation. If this email was forwarded to you, click here to sign up. The latest inflation data suggests that the worst fears of how tariffs would affect prices have yet to be borne out. But that doesn’t mean inflation has gone away. Data for August showed that the core consumer price index, which excludes the often-volatile food and energy categories, increased 0.3% from July. But when those components are included, the overall CPI rose 0.4%, the most since the start of the year. Prices for cars, clothing and appliances all rose as goods prices, excluding food and energy, accelerated 0.3%, matching the biggest climb since May 2023. Not all of that is the result of tariffs, to be sure, but economists continue to warn that the cost of the duties may yet to flow through to consumers.  A mall in Los Angeles during the back-to-school shopping season in August. Photographer: Eric Thayer/Bloomberg “Slowly—quite slowly in fact—but surely, we are seeing evidence of more tariff pass-through,” according to Brian Coulton, chief economist at Fitch Ratings. Groceries, gasoline, electricity and car repairs were also all higher. Airline fares jumped 5.9% over the month, after rising 4% in July. There was better news on dental costs. In July they jumped by the most on record, yet in August they fell by 0.7%. Although the inflation signals are mixed, they’re probably enough for the Federal Reserve to lower interest rates when policymakers gather next week—marking what would be the first cut of the year. Traders are betting that the Fed will lower its policy rate by at least 25 basis points, with some outlying calls for a larger 50 basis points move. The main reason economists say the Fed will cut is the softening labor market. Fresh data on Thursday showed why that’s a concern. Initial applications for unemployment benefits jumped last week to the highest level in almost four years. Weekly filings can be volatile around holidays, and this period included Labor Day. But the figures contribute to a broader picture. A revision of previous data that was released on Tuesday showed that job growth was far less robust in the year through March than previously reported. The number of workers on payrolls will likely be revised down by a record 911,000, or 0.6%, when the final figures come out early next year. That’s why there’s so much political pressure on the Fed to cut. Seema Shah, chief global strategist at Principal Asset Management, said the weakening jobs picture will add more urgency for the Fed to respond. “While the CPI report is a tad hotter than expected, it will not give the Fed a moment of hesitation when they announce a rate cut next week,” she said in a note. Related: Gold Surpasses Inflation-Adjusted Record High Set in 1980 | 
