WASHINGTON -- Inflation worries eased, at least temporarily, yesterday after the government issued a moderate consumer price report for August that was in line with market expectations.

The Labor Department said its consumer price index rose 0.3% for the third month in a row, resulting in a 2.9% increase in prices compared to a year earlier. Excluding food and energy, the core rate of inflation that is watched closely by Federal Reserve officials also was up 0.3% and 2.9% from August of last year.

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