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U.S. inflation rose more than expected in August as fuel prices rose, but underlying price pressures have eased.
According to the Bureau of Labor Statistics, headline consumer prices rose 3.7% year over year, up from 3.2% in July and above the consensus estimate of 3.6%. On a monthly basis, it rose by 0.6%.
More than half of the monthly increase was due to soaring gasoline prices.
However, core inflation, which subtracts volatile food and energy costs, was at an annual rate of 4.3%, down from 4.7% in July, with central banks closely following the rate.
The Fed has raised interest rates 11 times since March 2022 in an effort to bring inflation back to its 2% target.