Rising consumer prices and increased job layoffs are causing concerns about stagflation as the third quarter comes to a close. The Consumer Price Index for August rose 2.9% year-over-year, the highest since January, while initial jobless claims for the week ending Sept. 6 surged to 263,000, the highest level since October 2021 and above the expected 235,000. The combination of high inflation and a strained labor market is putting pressure on the Federal Reserve as it considers a rate cut next week. Chief U.S. economist at Oxford Economics, Ryan Sweet, suggests that the Fed is facing challenges as it navigates between rising inflation and weak job market data. Despite the difficult situation, a 25-basis-point rate cut at the upcoming meeting is still likely.