Inflation held at 3.4% in August in consumer price index, creating tough choice for Warsh Fed

Inflation held at a 3.4% rate for the year ending in August, the Bureau of Labor Statistics reported Friday, adding to signs that price pressures may have topped out over the summer.

While it has improved in recent months, inflation is still too high for the Kevin Warsh-led Federal Reserve, which is expected to raise its interest rate target next week in an attempt to limit price pressures.