Double whammy for Americans: Inflation continues to rise as jobs outlook grows weaker

(CNN) — The cost of living continues to increase for Americans at a time when the job market appears to be on shakier footing.

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 latest reading from the closely watched Consumer Price Index marks an acceleration from the 2.7% increase seen in July.

Economists were expecting the pace of price hikes to heat up in August as a wider swath of businesses passed along higher costs from President Donald Trump’s expansive tariffs.

FactSet estimates were for a 0.3% monthly gain and a 2.9% annual increase.

This story is developing and will be updated.

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