US inflation worsened last month as the cost of gas, food and airfares jumped

By CHRISTOPHER RUGABER Associated Press Economics Writer WASHINGTON AP Inflation moved higher last month as the price of gas groceries hotel rooms and airfare rose along with the cost of clothes and used cars Consumer prices rose in August from a year earlier the Labor Department announced Tuesday up from the previous month and the biggest increase since January Excluding the volatile food and potency categories core prices rose the same as in July Both figures are above the Federal Reserve s target Related Articles Musk loses crown as world s richest to system giant Larry Ellison in new Bloomberg ranking Novo Nordisk maker of obesity drug Wegovy to cut jobs to sharpen focus meet competition US vitality care hiring slowdown is warning for broader job sector Research links more frequent and severe heat waves to defilement from major fossil fuel producers Are EVs really better for the climate Survey checks role of coal battery and range The reading is the last facts the Fed will receive before its key meeting next week when policymakers are widely expected to cut their short-term rate to about from Still the figures underscore the challenges the Fed is facing as it experiences relentless pressure from President Donald Trump to cut rates Even as inflation has ticked higher contemporary regime reports have also shown that hiring has slowed sharply in current months and was lower than previously estimated last year The unemployment rate ticked up in August to a still-low And weekly unemployment asserts rose sharply last week a sign layoffs may be picking up Typically the Fed would cut its key rate when unemployment rose to spur more spending and advancement Yet it would do the opposite and raise rates or at least keep them unchanged in the face of rising inflation Last month Chair Jerome Powell signaled that Fed personnel are increasingly more concerned about jobs and are likely to cut their rate when they meet next week Yet stubbornly high inflation could keep the Fed from cutting very promptly On a monthly basis overall inflation accelerated as prices rose from July to August faster than the pace the previous month Core prices rose for the second straight month