Inflation Eases Slightly in August Amid Strong Consumer Spending

Inflation cooled slightly in August, rising 3.4% compared to the same month last year, below the expected 3.7%, according to a report from the Commerce Department on Wednesday.

The decline was driven by a decrease in core prices, which rose 3% in August from a year ago and 0.2% from July to August.

Despite the slight easing of inflation, it remains above the Federal Reserve's target of 2%, and most economists expect at least one more interest-rate hike this year to combat inflation.