Inflation ticked up in August; September Fed rate cut in play

U.S. inflation accelerated modestly in August, offering some leeway for the Federal Reserve to cut interest rates at its September meeting.

Consumer prices rose an annual 2.9% in August, the Labor Department said on Sept. 11 , up from a 2.7% annual increase in July. But a reading of "core inflation," which ignores more volatile categories of spending, stripping out food and energy items, was at 3.1% for the second month in a row.