Inflation defies expectations to rise in August, paving the way for a likely Fed hike

US inflation was firmer than expected in August, likely keeping the Federal Reserve on track for a third-straight 75 basis-point interest-rate hike.

The consumer price index increased 0.1% from July, after no change in the previous month, Labor Department data showed Tuesday. From a year earlier, prices climbed 8.3%, a slight deceleration.

So-called core CPI, which strips out the more volatile food and energy components, advanced 0.6% from July and 6.3% from a year ago. All measures came in above forecasts.