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

WASHINGTON AP Inflation rose last month as the price of gas groceries hotel rooms and airfares rose along with the cost of clothes and used cars Consumer prices increased in August from a year earlier the Labor Department mentioned Tuesday up from the previous month and the biggest increase since January Excluding the volatile food and potential categories core prices rose the same as in July Both figures are above the Federal Reserve s target The reading is the last 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 new inflation content underscores the challenges the Fed is facing as it experiences relentless pressure from President Donald Trump to cut rates Inflation remains stubborn while the job realm is weakening diverging trends that would require polar reactions from Federal Reserve policymakers to address Hiring has slowed sharply in new months and was lower than previously estimated last year The unemployment rate ticked up in August to a still-low And weekly unemployment maintains rose sharply last week the leadership also broadcasted Thursday a sign layoffs may be picking up Typically the Fed would cut its key rate when unemployment rose to spur more spending and expansion 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 administrators are increasingly concerned about jobs Yet stubbornly high inflation could keep the Fed from cutting very fleetly 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 Gas prices jumped just from July to August the biggest monthly increase since a rise in December Grocery prices climbed pushed higher by more expensive tomatoes apples and beef The cost of trip soared with air fares rising just from July to August and hotel room prices rising Rental costs also increased rising faster than the previous month The impact of tariffs appeared to be mixed with a great number of imported goods rising in price but modestly Clothing costs rose just last month though they are still just slightly more expensive than a year ago Furniture costs rose and are higher than a year earlier Appliance costs also rose from July to August after falling the previous month The inflation statistics arrives at the same time that Trump has sought to fire Fed governor Lisa Cook as part of an effort to assert more control over the Fed Yet late Tuesday a court reported the firing was illegal and ruled that Cook could keep her job while the dispute played out in the courts