Inflation Remains Above Target as Fed Prepares to Raise Rates

The August inflation report has been released, showing that prices rose 0.4% from July to August and are up 3.4% compared to last August.

Core inflation, which removes fuel prices from the calculation, did not change, indicating that energy is not the only factor keeping prices elevated.

The Federal Reserve has a target inflation rate of 2%, but with prices remaining stubbornly above this level, experts are expecting the Fed to raise interest rates at its meeting next week.