Inflation ticked up in August amid weakening job market

Consumer price growth rose in August, the Bureau of Labor Statistics reported Thursday.

Consumer price growth rose in August, the Bureau of Labor Statistics reported Thursday. It's the latest indication that the U.S. economy continues to contend with inflation even as the job market cools.

The broadest measure of price growth increased 0.4% last month after rising 0.2% in July and ahead of estimates of 0.3%. On a 12-month basis, the index climbed by 2.9% compared with 2.7% in July. It’s the highest reading since January.

Excluding food and energy prices, which tend to be more volatile, price growth hit 3.1% on a 12-month basis, the highest figure since February and the third-straight month that this rate has picked up.

Some of the biggest price increases seen between July and August were in prices for used cars and trucks and transportation services, which includes airfare — both up by 1%.

Despite the uptick, analysts say the Federal Reserve remains on track to cut interest rates at its meeting next week. More cuts are likely in the offing assuming the labor market continues to weaken. The U.S. Department of Labor also reported Thursday that weekly jobless claims came in at 263,000 on Thursday, higher than expectations. Last week, the BLS reported the United States added only 22,000 jobs in August.