WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries, and airfares jumped, while a measure of layoffs also increased, putting the Federal Reserve in a tough spot as it prepares to cut rates at its meeting next week despite persistent price pressures.

Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Tuesday, up from 2.7% the previous month and the biggest increase since January. Excluding the volatile food and energy categories, core prices rose 3.1%, the same as in July. Both figures are above the Federal Reserve’s 2% target.

The reading is the last the Fed will receive before their two-day meeting the begins Tuesday, where policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the new inf

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