U.S. inflation accelerated in August due to a jump in gasoline costs, but underlying price pressures were likely mild enough to keep the Federal Reserve on track to hold interest rates steady next week. …

Fed officials signaled last week they were preparing to hold interest rates steady at their meeting next week, and Wednesday’s inflation report isn’t likely to change that outcome. Whether it is enough to lead officials to raise interest rates again in November or December largely depends on whether inflation firms up in the coming months.

[The Fed won’t change course based on CPI or even core CPI readings. They will wait for the PCE inflation index later this month. That ticked up to 3.3% in July from June’s 3.0% reading. We can presumably expect another increase now, but the amplitude of that change will likely drive a decision on interest rates. — Ed]