US Core Inflation Surges as Fed Faces Rate Hike Decision

The US Consumer Price Index rose 0.4% in August, matching expectations and adding pressure on the Federal Reserve to hike interest rates at its upcoming meeting.

The increase in headline CPI was accompanied by a 3.4% year-over-year rise in prices, also in line with forecasts.

However, the core CPI measure, which excludes volatile food and energy prices, rose 0.3% in August, exceeding the 0.2% monthly increase economists had anticipated.

The Federal Reserve will consider this data as it makes its decision on interest rates at its meeting next week.