Fed Odds of Rate Hike Surge to Almost 90% as Inflation Pressures Mount

The US Federal Reserve is under pressure to raise interest rates after August's inflation data showed prices rising across a wide range of goods and services.

The consumer price index (CPI) climbed a seasonally adjusted 0.4% for the month, with both readings matching the Dow Jones consensus.

Core CPI, which strips out volatile food and energy prices, rose 0.3% for the month, coming in 0.1 percentage point above forecasts.

The August report is the final major inflation indicator the Fed will consider before its policy meeting concludes on Wednesday with a vote on its benchmark interest rate.