August inflation pickup raises pressure on the Federal Reserve

Consumer prices rose 0.4% in August from July, up from a 0.1% increase the previous month, according to the Bureau of Labor Statistics. Annual inflation held at 3.4%. Core CPI, excluding food and energy, increased 0.3% for the month and 2.4% from a year earlier.

Gasoline prices rose 3.9% in August and were up 27.4% year over year. The report comes before the Federal Reserve’s policy meeting next week, with traders assigning an 85% probability to a 25-basis-point rate hike, according to Reuters.

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