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For the Fed, inflation doesn’t matter … for now

As for the Federal Reserve’s interest rate policy, what inflation does now matters a lot less than what it does next spring.

What inflation is doing now is pretty high. The Labor Department said on Tuesday that its seasonally adjusted consumer price index rose 0.3% in August compared to July, placing it 5.3% above its level a year earlier. Basic prices, which exclude food and energy products to better capture the inflation trend, rose 4% from the previous year.