Consumer price inflation in August slipped for the fifth month in a row to 2.5%, largely because of the weakness in energy prices, the Bureau of Labor Statistics reported Wednesday. 

Energy costs declined 4% compared to a rise of 1% in the previous month, overshadowed by the increase in housing inflation to 5.2% from 5.1% in July. 

On a monthly basis, inflation held steady at 0.2%, matching the rate in the previous month, driven by a 0.5% rise in shelter costs. 

Core inflation, which excludes volatile food and energy prices, steadied at a three-year low of 3.2%, indicating slow progress in weakening well-anchored inflation. 

After the inflation report, investors still held out for at least a 25 basis points rate cut next week. 

Despite the widely anticipated rate cut, inflation is well-anchored in the economy, and rates are far from restrictive, as the U.S. economy is still adding jobs above the long-term average and GDP is expanding at a faster rate than 2%. 

Moreover, an interest rate cut is not likely to alter the long-term structural issues with the economy, international trade competitiveness, widening inequality, and entrenched poverty.