"Consumer prices rose 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the Federal Reserve's 2% target. On a monthly basis, overall inflatin accelerated, as prices rose 0.4% from July to August, faster than the 0.2% pace the previous month. Core prices rose 0.3% for the second straight month."
"The reading is the last data the Fed will receive before its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the figures underscore the challenges the Fed is facing as it experiences relentless pressure from President Donald Trump to cut rates. Even as inflation has ticked higher, recent government reports have also shown that hiring has slowed sharply in recent months and was lower than previously estimated last year."
Consumer prices rose 2.9% year-over-year in August, up from 2.7% the prior month and the largest increase since January. Core inflation excluding food and energy remained at 3.1% year-over-year, both measures above the Federal Reserve's 2% target. Monthly inflation accelerated 0.4% in August, with core monthly prices up 0.3%. Increases in gas, groceries, hotel rooms, airfare, clothing and used cars drove much of the rise. The Fed faces pressure from President Donald Trump to cut rates and is widely expected to lower its policy rate next week, but higher inflation and weakening hiring complicate that decision.
Read at Fortune
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