<h1>August CPI rises 2.9% year-over-year, core 3.1%, complicating expected policy rate cut amid labor weakness.</h1> Consumer prices rose 2.9% year-over-year in August, up from 2.7%, with core inflation at 3.1%, both above the central bank's 2% target; monthly inflation accelerated 0.4%. The data precede a policy meeting where officials are widely expected to trim the short-term interest rate, but higher inflation complicates an expedited cut by creating tension between mandates to control inflation and to support employment. Recent signs of slowing hiring and a slight uptick in unemployment add to the policy dilemma. The figures could affect the timing and legal justification for any regulatory or monetary adjustments.