Investing.com – U.S. consumer prices rose in August at the fastest rate since January, bolstering expectations for another rate hike by the Federal Reserve this year.
The consumer price index rose 0.4% in August from a month earlier, the Labor Department said on Thursday.
The annual rate of inflation rose to 1.9%, moving closer to the Fed’s target of 2.0%.
Fed officials have been waiting for signs of rising inflation, together with low unemployment and solid job growth, before raising interest rates again.
Some Fed officials had expressed concern in recent weeks about pushing ahead with interest-rate increases in light of recent soft inflation data.
The CPI report offered the last look at U.S. inflation figures before the upcoming Fed meeting next week.