August CPI Report Reinforces Expectations of September Fed Rate Hike

The US Consumer Price Index (CPI) accelerated in August, reinforcing expectations that the Federal Reserve will raise interest rates next week.

CPI rose 0.4% month-over-month in August, while yearly CPI remained unchanged at 3.4% from July.

Gasoline prices jumped 3.9% in August and accounted for more than one-third of the monthly increase in the CPI.

The report also showed that core inflation, excluding food and energy, rose 0.3% on the month and 2.4% year-over-year.

Federal Reserve officials now have less room to maneuver as they try to maintain their inflation-fighting credentials.