U.S. inflation picked up moderately in August, with prices up 2.9% from a year earlier. The Federal Reserve next meets Sept. 16-17.

The producer price index was expected to increase 0.3% in August, according to the Dow Jones consensus estimate.

U.S. inflation likely ticked higher last month as the Trump administration’s import taxes lifted the price of goods, putting the Federal Reserve in a tough spot when it meets next…