Xinhua/Wang Ying/Getty Images
- US stocks rose on Wednesday even as inflation clocked in hotter than expected.
- Consumer prices rose 3.7% year over year in August, above the estimated 3.6%.
- Still, traders are largely expecting the Fed to hold interest rates steady at their next policy meeting.
US stocks rose Wednesday as traders digested hotter-than-expected inflation during the month of August.
Consumer prices rose 3.7% year over year during the month of August, higher than the expected 3.6% rate and up from July's 3.2% increase. Meanwhile, core inflation rose 4.3%, matching forecasts.
The quickening pace of inflation is largely due to rising gas prices, in addition to rising shelter prices, which increased for the 40th straight month in August, the Bureau of Labor Statistics said in a statement.