U.S. inflation remained unchanged at 3.4% in August, keeping the possibility of another Federal Reserve interest-rate increase in focus. Consumer prices rose 0.4% from July, accelerating from the 0.1% monthly increase recorded in the previous month, according to Bureau of Labor Statistics data.

The Consumer Price Index for All Urban Consumers (CPI-U) had already recorded several significant monthly changes earlier in the year. Prices increased 0.3% in February, 0.9% in March, 0.6% in April and 0.5% in May before declining 0.4% in June. The index then edged up 0.1% in July before rising more sharply in August. The annual inflation rate was unchanged from July at 3.4%.

CME Group (NASDAQ: CME) FedWatch pricing showed traders assigning roughly 70% odds to another Federal Reserve rate increase during morning trading. The market also priced the probability of another increase in December at close to 60%.

Wholesale inflation added to the cautious outlook. Producer prices increased 0.4% in August, matching expectations, while July’s increase was revised upward to 0.1%. Annual producer-price inflation reached 5.4%, slightly above forecasts. U.S. crude oil also climbed above $100 a barrel.

Energy and food costs add pressure to household spending

Energy prices increased 2.1% in August, partly reversing the previous month’s 1.5% decline. Gasoline prices rose 3.9% after seasonal adjustment and accounted for one-third of the overall increase in the CPI.

On an unadjusted basis, gasoline prices rose 2.5% in August. The previous monthly changes were 0.8%, 21.2%, 5.4%, 7.0%, -9.7% and -2.9%. Gasoline prices were 27.4% higher than a year earlier, while the overall energy index increased 16.3% over the same period.

Energy commodity prices rose 4.2% in August and were up 28% over the previous 12 months. Before August, the monthly changes in this category were 1.1%, 21.3%, 5.6%, 6.7%, -9.5% and -2.9%.

Fuel oil prices jumped 10.1% in August and were 52% above their year-ago level. Monthly changes from February through July were 11.1%, 30.7%, 5.8%, 3.8%, minus 9.2% and minus 1.7%.

Energy services, by contrast, declined 0.4% in August but remained 4% higher than a year earlier. The previous monthly changes were 0.2%, 0.4%, 1.6%, 0.4%, -0.7% and 0.3%.

Food prices increased 0.1% in August and were 2.7% higher than in August of the previous year. The earlier monthly changes were 0.4% in February, zero in March, 0.5% in April, 0.2% in May and June, and 0.1% in July.

Housing, travel and services lift core inflation

Core inflation, which excludes food and energy, rose 0.3% in August after increasing 0.2% in July. Its annual rate eased slightly to 2.4% from 2.5%. Monthly core readings before August were 0.2% in February, 0.2% in March, 0.4% in April, 0.2% in May, zero in June and 0.2% in July.

Housing costs increased 0.3% in August after rising just 0.1% in July. They were 3% higher than a year earlier. Housing costs had recorded monthly increases of 0.2%, 0.3%, 0.6%, 0.3%, 0.1% and 0.1% from February through July. Rent increased 0.2% in August, while owners’ equivalent rent also rose 0.2%.

Hotels and other short-term lodging became 2.4% more expensive after falling 2.8% in July. Communication costs rose 2.3%, compared with a 0.6% increase the previous month. Airline fares increased 2.7%, and education prices rose 0.8%.

Used cars and trucks rose 0.4% in August, matching July’s increase, although prices remained 2.3% below their level a year earlier. The previous monthly changes were minus 0.4% in February, minus 0.4% in March, zero in April, 0.1% in May and minus 0.2% in June.

Before seasonal adjustment, the main CPI-U index stood at 334.980, using the 1982-84 period as the base value of 100. The index increased 0.3% in August before seasonal factors were applied.

The CPI for Urban Wage Earners and Clerical Workers (CPI-W) reached 328.481. It was 3.5% above its year-ago level and rose 0.4% in August on an unadjusted basis.

The chained C-CPI-U increased 3.3% from a year earlier and rose 0.3% in August before seasonal adjustment. Figures covering the most recent 10 to 12 months may still be revised.