New Delhi, Sept. 30 -- US inflation rose less than economists had expected in August, while price pressures in July were also revised lower. The softer data could reportedly ease pressure on the Federal Reserve to consider another interest-rate hike in October.

However, another rate increase later this year has not been ruled out, as a Commerce Department report showed consumer spending jumped in August. The US economy has so far remained resilient despite pressures linked to the US-Israel war with Iran, which has pushed up energy prices. Economists had expected inflation to stay elevated amid record-high diesel prices.

Following the inflation data, financial markets reduced their expectations for another Fed rate hike next month.

"The...