In particular, prices for housing increased 0.4% in August, while the cost of groceries went up by 0.6%. The increase in prices of necessities means consumers will continue to be squeezed as the pace of wage increases slows.

The consumer-price index for August showed inflation is still rising at an uncomfortable level, but not so uncomfortable that the Federal Reserve won't cut interest rates. How come? While higher U.S.

Inflation ticked up for the fourth month in a row, rising in line with forecasts, as higher tariff rates trickle into prices for consumer goods. The consumer price index climbed 2.9% year over year in August,

The reading is the last data the Fed will receive before its key meeting next week, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%.

U.S. inflation likely ticked higher last month as the Trump administration’s import taxes lifted the price of goods, putting the Federal Reserve in a tough spot when it meets next week.

Wholesale inflation unexpectedly slowed in August, as higher tariffs are proving slow to work their way through the pipeline. The producer price index for total final demand edged down 0.1% in August.