Economists expected inflation to heat up in August, in part because businesses were passing along higher costs from tariffs. Frederic J. Brown/AFP/Getty Images

The cost of living continues to increase for Americans at a time when the job market appears to be on shakier footing, creating a complicated economic problem that could be tricky to solve.

Consumer prices rose 0.4% in August, driving the annual inflation rate to 2.9%, the highest since January, according to Bureau of Labor Statistics data released Thursday. The reading marked an acceleration from the 2.7% increase seen in July, with price hikes driving up the cost of Americans’ most basic needs.

Grocery and fuel prices shot higher in August after falling the month before. Food at home prices rose 0.6% — the highest monthly j

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