Consumer prices rose more than expected in August while jobless claims increased, presenting mixed signals for the Federal Reserve ahead of its policy meeting next week.

The consumer price index (CPI) climbed 0.4% for the month—the largest gain since January—pushing the annual inflation rate to 2.9%, up 0.2 percentage points from July.

Core CPI, which excludes volatile food and energy costs and is considered a better measure of long-term inflation, rose 0.3% in August, leaving the annual rate at 3.1%, in line with forecasts.

Weekly jobless claims unexpectedly increased to a seasonally adjusted 263,000 for the week ending Sept. 6, marking the highest level in nearly four years and exceeding economists’ estimates of 235,000.

Shelter costs, which make up about a third of the CPI, contributed most to the monthly increase, alongside jumps in food and energy prices, including a 1.9% rise in gasoline likely linked to tariffs, CNBC has reported.

Stocks rose sharply after the reports, as investors interpreted the data as increasing the likelihood of future interest rate cuts by the Federal Reserve.