Inflation came in hotter than expected in August, and that's bad news for workers, renters, and anyone hoping for lower interest rates.

• Prices rose faster than wages over the past year, so people are falling behind.
• Gas hit $6 a gallon for the first time ever, and diesel hit a record too.
• Rents are the biggest squeeze — small apartments now cost $1,000, and two-bedrooms run well over $2,000 in much of the country.
• Long-term government borrowing costs are the highest since 2007, adding pressure from the huge deficit and heavy AI-related borrowing.
• The White House insists inflation is cooling and points to strong growth, plus a floated $5,000 payout if Republicans win Congress — with no explanation of how it would be paid for.

Outlook: The Fed decides on rates next week, and with prices still climbing and borrowing costs rising, relief for households looks unlikely soon.