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US Inflation Tops Forecasts, Cementing Odds of Big Fed Hike

  • Consumer prices rose 0.1% from July, defying estimate for drop
  • Shelter, food and medical care were among largest contributors
Bloomberg business news
US August Consumer Price Index Tops ForecastsSource: Bloomberg
Updated on

US consumer prices were resurgent last month, dashing hopes of a nascent slowdown and likely assuring another historically large interest-rate hike from the Federal Reserve.

The consumer price index increased 0.1% from July, after no change in the prior month, Labor Department data showed Tuesday. From a year earlier, prices climbed 8.3%, a slight deceleration, largely due to recent declines in gasoline prices.