The index for shelter was the largest contributor to the monthly all items increase, accounting for more than 70 per cent of the increase, Xinhua news agency reported
Excluding the volatile food and energy components, core CPI increased to 6.3% from 5.9% in July, putting further pressure on the Fed to continue on its rate-hiking spree
While last week's strong jobs report allayed fears of recession, inflation numbers this week showed the largest month-on-month deceleration of consumer price increases since 1973
Spot gold was down 0.4% at $1,719.49 per ounce by 09:35 a.m. ET (1335 GMT), after dropping to its lowest since August at $1,707.09 earlier in the session. US gold futures were down 0.6% at $1,714.60
US consumer price data due to be released later on Thursday is expected to show the pace of annual price increases jumped to 7.9% last month from 7.5% in January
A robust inflation reading is expected to burnish gold's appeal as an inflation hedge, but interest rate hikes would raise the opportunity cost of holding non-yielding bullion
The euro edged up on Wednesday but was off Friday's three-week high, as traders looked for clues as to when the European Central Bank will hike interest rates
US consumer prices in November rose at the fastest annual pace in almost 40 years, increasing pressure on the Federal Reserve to tighten monetary policy, the Labour Department reported.
Global shares hit record highs Wednesday after data showed US consumer price increases slowed in July, easing concerns that the Federal Reserve will imminently signal a scaling back of bond purchases
The consumer price index increased 0.8 per cent from the prior month, reflecting gains in nearly every major category and a sign burgeoning demand is giving companies latitude to pass on higher costs
