US inflation jumps 2.9% in August as gas, grocery, aircraft rent prices rise

American inflation increased over the cost of gas, grocery items, hotel rooms and airfare roses along with the cost of clothes and cars used.

A year ago, consumer prices rose by 2.9 percent since August, the labor department said on Tuesday that last month above 2.7 percent. It marked the biggest growth since January.

Except for volatile food and energy categories, core prices rose by 3.1 percent, which was similar to July. Both figures are above the target of two percent of the Federal Reserve.

Reading is the final data that Fed will receive next week before its major meeting, when policy makers are expected to deduct their short -term rate, which is about 4.1 percent from 4.3 percent.

Nevertheless, the figures underline challenges that Fed is facing as it experiences tireless pressure to cut rates from President Donald Trump.

As inflation has grown more, recent government reports have also shown that the hiring has slowed down rapidly in recent months and was lower than before in the previous year. The unemployment rate still decreased by 4.3 percent in August. And last week, weekly unemployment claims grow rapidly, a signal can be sorted.

Typically, Fed cuts its major rate when unemployment promotes higher expenses and growth. Still it will contrast and increase the rates – or at least keep them unchanged – in front of rising inflation.

Last month, Fed Chair Zerome Powell indicated that the Fed officials are more concerned about jobs, and are likely to cut their rates when found next week. Nevertheless, very high inflation can prevent the fed from cutting very quickly.

On a monthly basis, overall inflation rose, as prices increased by 0.4 percent from July to August, which was at a speed of 0.2 percent in the previous month. Core prices rose 0.3 percent for the second straight month.

Inflation figures come when Trump has demanded fed governor Lisa Cook as part of an attempt to claim more control over the Fed. However, a court said late on Tuesday that the firing was illegal and ruled that Cooks could keep their jobs while the dispute was played in the courts.