Minneapolis Fed Chair Neel Kashkari said on Wednesday that although the latest data fell short of economists' expectations, the pace of price increases remains concerning.

"Inflation is still too high," Kashkali said in an exclusive one-on-one interview with CNBC journalist Steve Lisman at an event organized by the Council on Foreign Relations in New York.

Kashkali's comments came shortly after the release of the Personal Consumption Expenditures Price Index for August ( PCE ) on Wednesday morning. The PCE is considered the inflation indicator favored by the Federal Reserve. Excluding the more volatile prices of food and energy, the core PCE rose by 3% year-on-year, which was lower than economists' expectations.

"There are many indicators for measuring inflation, but currently they are all around 3%," said Kashkali, "and this level has remained high for over five years. I don't think today's inflation data has significantly changed my view of this situation."

Kashkari stated that other economic data released on Wednesday—including consumer spending and gross domestic product ( GDP )—show that the U.S. economy has "resilience."

The Federal Reserve raised interest rates for the first time in three years this month in order to bring down inflation rates, which are higher than its ideal level. The Fed also hinted that it may raise rates further in the future.