Grocery prices jumped 0.6% in August, fueling a sharper-than-expected jump in inflation last month. Prices rose 0.4% between July and August, compared to a 0.2% increase the previous month. Prices for groceries jumped 0.6% while gasoline prices rose 1.9%. Consumers also saw higher prices for new and used cars, clothing and air fares in August. The Federal Reserve faces a challengeThe continued rise in prices poses a challenge for the Federal Reserve as it weighs what to do about interest rates.