The cost of living continues to increase for Americans at a time when the job market appears to be on shakier footing, creating a complicated economic problem that could be tricky to solve.

Consumer prices rose 0.4% in August, driving the annual inflation rate to 2.9%, the highest since January, according to Bureau of Labor Statistics data released Thursday. The reading marked an acceleration from the 2.7% increase seen in July, with price hikes driving up the cost of Americans' most basic needs.

Grocery and fuel prices shot higher in August after falling the month before. Food at home prices rose 0.6% -- the highest monthly jump in nearly three years -- and gas prices climbed by 1.9% after falling 2.2% the month before.

The latest Consumer Price Index provided further evidence that some costs from President Donald Trump's policies, such as sweeping immigration reform and steep tariffs, are slowly being passed along to consumers, economist Dean Baker, co-founder of the Center for Economic and Policy Research, told CNN on Thursday.

https://finance.yahoo.com/news/double-whammy-americans-inflation-continues-134727781.html