Consumer prices rose 2.9% in August compared to a year ago, marking an uptick in price increases as President Donald Trump's tariff policy intensified. The reading matched economists' expectations.

Thursday's consumer-price index for August included an annual core inflation rate of 3.1%, which has remained above 2% since April 2021. It may take a recession to lower this rate to 2% in the next several years.

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.

As the Federal Reserve cut its federal funds rate, here’s how it ripples through the economy and influences your finances.

The S&P 500 and the Nasdaq scaled fresh intraday record highs on Wednesday driven by a surge in cloud computing firm Oracle, while cooler-than-expected inflation data kept the U.S. Federal Reserve on track to cut borrowing costs this year.

Meanwhile, wholesale inflation unexpectedly declined last month, bolstering the case for the Federal Reserve to cut rates next week. Oracle stunned Wall Street as its CEO said its cloud revenue will skyrocket thanks to a big jump in bookings from the "who's who of AI.

Economists are split into opposite camps on which is more important for the Fed to battle — slower growth or higher inflation.

After a weak jobs report, the producer and consumer price indices for August could be the next worry for the markets and the Fed.