The Globe and Mail reports in its Thursday edition that inflation remained high in August, leading the Federal Reserve to increase interest rates for the first time in nearly three years. A New York Times dispatch to The Globe reports that prices rose 0.3 per cent in August and 3.4 per cent year-over-year. "Core" prices, excluding food and energy costs, rose 0.2 per cent from the previous month, showing a slight acceleration from July and slightly better than forecasts. Year-over-year, those prices jumped by 3 per cent, unchanged from July. The Commerce Department released the latest Personal Consumption Expenditures Price Index, along with methodological changes that retroactively adjusted price calculations since 2021, resulting in lower core inflation rates than previously reported. Revisions show inflation has not been as high as previously thought, along with encouraging August data. This may lead policy-makers to delay further interest rate hikes until later this year. However, it is unlikely to change the Fed's stance that more work is needed to reach its 2-per-cent target after five years of overshooting. According to the Fed's latest projections, most policy-makers expect that level to be reached by 2029.