The US inflation rate rose to 2.9% in August, highlighting the challenges the Federal Reserve faces before making a crucial interest rate decision next week. The annual Consumer Price Index released by the US Bureau of Labor Statistics on Thursday was higher than July's 2.7% and also in line with analysts' forecasts of 2.9%. Core inflation remained stable at 3.1%, in line with expectations. The data comes as the Federal Reserve grapples with a weakening labor market and political pressure from US President Trump to cut interest rates. Traders continue to expect the Federal Reserve to cut interest rates by 25 basis points next week, but bets are slightly increasing on the pace of rate cuts at subsequent meetings. Federal Reserve Chairman Powell has opened the door to a rate cut in September, saying at the end of last month that a weak job market would mitigate the risk of rising inflation from Trump's full tariffs. (金十)