US inflation minus food and fuel jumped by the most in 10 years in July, beating market forecasts, and canceling out small increases in wages.

The core measure of the Consumer Price Index rose 2.4% in July, versus market forecasts of 2.3%.

A labor department report, also released on Friday, showed inflation-adjusted wage gains were flat versus the previous month, and had fallen 0.2% year-on-year.

Federal Reserve chair Jerome Powell has indicated that, as long as inflation stays in the ballpark of the 2% target, the rate hikes will continue.

Chicago Fed President Charles Evans suggested as much on Thursday, saying it “makes sense” that inflation has risen, considering the strong economy, and that even if inflation moves above 2%, “that is nothing to worry about.”

“We don’t have to win the war on inflation over again because we did that in a very difficult costly and arduous fashion in the eighties and into the nineties.”

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