U.S. consumer prices rose in August at the fastest pace in seven months due to higher housing and food costs, but rising jobless claims kept the Fed on track to cut rates next week, according to Reuters. The Labor Department reported the biggest annual inflation rise since January, stoking stagflation fears and complicating the Fed’s upcoming rate decision amid a weakening labor market. Inflation rose as businesses passed on costs from Trump’s tariffs and travel demand rebounded after a slump caused by boycotts and the administration’s immigration crackdown. Markets expect a quarter-point Fed rate cut next week and two more this year, after the central bank paused easing in January over tariff-driven inflation concerns. With pre-tariff inventories depleted, businesses are raising prices, leaving economists split on whether tariff effects will be temporary or prolonged.