EVERYTHING IS GOING SWIMMINGLY: U.S. Inflation Accelerated in August as Gasoline Prices Jumped.

Consumer prices rose in August at the fastest pace in more than a year due to a jump in energy costs, illustrating the potential obstacles to wringing inflation out of the economy without a sharper slowdown.

The consumer-price index, a closely watched inflation gauge, rose 0.6% in August from the prior month, the Labor Department reported Wednesday. More than half of the increase was due to higher gasoline prices.

So-called core prices, which exclude volatile food and energy items, rose by a relatively mild 0.3% last month after even lower readings in June and July. The August increase reflected higher costs for items such as airfares and vehicle insurance. . . .

Several factors could put upward pressure on prices in the coming months.

Saudi Arabia’s decision to extend cuts to its crude-oil output until the end of the year could keep gasoline prices elevated, according to the International Energy Agency. A potential strike by the United Auto Workers union could upend production at one or more auto manufacturers and push up prices on dealership lots. Recently reached labor contracts in the airline and healthcare industries will boost pay for some workers at a time when the Fed is seeking a slowdown in wage growth to help cool inflationary pressures.

Just remember, it can always get worse.