The Globe and Mail reports in its Thursday, Sept. 12, edition that U.S. consumer prices rose slightly in August, and underlying inflation showed persistence due to increased costs for housing and other services. A Reuters dispatch to The Globe reports that this reduces the likelihood of a half-point interest rate cut by the Federal Reserve next week. Financial markets now favour a quarter-point rate cut and have decreased the probability of a 50-basis-point reduction. Nationwide economist Ben Ayers said: "The road to normal inflation hit a bump in August as lingering pressures for housing and service costs once again cropped up. This should clinch a smaller, 25-basis-points rate cut from the Fed next week as Fed officials remain wary to feed any lingering price momentum for the economy." The consumer price index increased 0.2 per cent last month after rising by a similar margin in July, the Labor Department's Bureau of Labor Statistics said. The rise in the consumer price index was in line with economists' expectations. The labour market is cooling amid a significant moderation in hiring, reducing the risks of inflation reigniting. In addition, oil prices have dropped and supply chains have improved considerably.