NEW YORK: The dollar index rose on Wednesday, after US economic data showed inflation increased for August but did little to move the needle on expectations for the path of rate hikes from the Federal Reserve.

The consumer price index increased by 0.6% last month, the largest gain since June 2022, as gasoline prices jumped, Labor Department data showed. Excluding the volatile food and energy components, the CPI increased 0.3%, moderated by a decline in prices for used cars and trucks.

“The move higher in headline inflation is a head-fake since it was mostly driven by a huge 10.5% jump in energy commodity prices,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.