US inflation accelerated in August for the second-straight month, pushed up by rising gas prices. However, core inflation, which strips out volatile food and energy prices, continued to slow, according to data from the Bureau of Labor Statistics released Wednesday.
The Consumer Price Index, a closely watched inflation gauge, rose 3.7% in August from a year earlier, up from July's 3.2% rise.
That's roughly in line with economists' expectations.
On a month-to-month basis, prices rose 0.6% in August, compared with a 0.2% gain in July.
However, core inflation slowed to 4.3% from 4.7% for the 12 months ending in August, an indication that the Federal Reserve's 11 rate hikes are working their way through the economy. Monthly core inflation rose by 0.3% in August.
Wednesday's inflation report likely keeps the Fed on track for a pause in rate hikes next week when central bank officials meet to deliberate monetary policy.
This story is developing and will be updated.
