Gasoline spike keeps U.S. inflation hotter in August

U.S. consumer prices rose 0.4% in August, with the core CPI up 0.3%, leaving annual inflation at 3.4%. A sharp 3.9% jump in gasoline prices helped drive the monthly increase, while food costs were largely flat. Core inflation remains elevated at about 2.4% year over year, and the report fed bets that the Federal Reserve will raise rates next week, with markets pricing roughly a 90% likelihood of a move. Economists also note potential methodological changes in the upcoming PCE inflation release that could nudge core inflation lower by a few basis points.