Fed rate hike back on the table? US inflation jumps in August.

US consumer prices rose faster in August, mainly because petrol became more expensive again after two months of falling prices. This has increased expectations in financial markets that the Federal Reserve could raise interest rates next week. The Consumer Price Index (CPI) — a key measure of inflation that tracks the average change in prices paid by consumers — increased 0.4 per cent last month. In July, it had risen just 0.1 per cent, according to the Labour Department's Bureau of Labour Statistics on Friday. Over the 12 months through August, consumer inflation rose 3.4 per cent, the same rate as the previous month.