Inflation Rate Eases But Remains Above Fed Target

The US inflation rate cooled slightly in August, rising 3.4% compared to the same month last year. This is below the 3.7% economists had forecasted.

However, prices are still running hot, with a monthly increase of 0.3%. On an annual basis, excluding energy and food categories, inflation rose 3%, lower than expected.

The Federal Reserve's target for inflation is 2%, and the current rate remains above that. The Fed recently lifted its key short-term interest rate to combat inflation, and most economists expect another hike this year.