Core CPI, which doesn't include volatile energy prices and food, increased 6.3% compared to August last year.
"One thing was clear after today's report - Treasury Secretary Yellen clearly didn't get a sneak peek at the data," said Michael Reinking, senior market strategist at the New York Stock Exchange. "Today's data was disappointing, especially related to core inflation which showed widespread gains across components."
See omnystudio.com/listener for privacy information.