High Gas Prices Push Up Inflation, But Prices Overall Slowing Moving In Right Direction

WASHINGTON (AP) — Inflation jumped last month largely because of a spike in gas prices, while other costs rose more slowly, suggesting price pressures are easing at a gradual pace.

In a set of conflicting data released Wednesday, the Labor Department said the consumer price index rose 3.7% in August from a year ago, up from a 3.2% annual pace in July.

Yet excluding the volatile food and energy categories, so-called core prices rose 4.3%, a step back from 4.7% in July and the smallest increase in nearly two years.

That is still far from the Federal Reserve’s 2% target.