The details in the latest Consumer Price Index report could compel the Federal Reserve to raise interest rates.

The number matched analyst expectations and was even with July’s 3.4%.

The report comes at a pivotal moment for the Federal Reserve, which is scheduled to meet next week to decide whether to hike interest rates.

August CPI data leaves Kevin Warsh to choose between acting on his inflation warnings or risking new doubts about his control of the central bank.

Although the CPI data is important, the Fed's 2% inflation benchmark is tied to the annual growth in the personal consumption expenditures, or PCE, price index produced by the Bureau of Economic Analysis.

The bottom line on the August CPI data is expected to be that the Federal Reserve isn't making enough progress on bringing inflation down, said Meghan Swiber, senior U.S. rates strategist at BofA Securities.

Wholesale prices just flashed a warning that factories and farms absorb long before your grocery receipt does, and the Fed has to vote on interest rates before its own favorite inflation gauge even arrives.

The 10-year Treasury yield is nearing 5% as oil, tariffs and sticky service prices raise fears that Kevin Warsh may have to restart the rate-hiking cycle.