August CPI Surge Puts Fed Rate Hike Bets Over 90 Percent

The US Consumer Price Index (CPI) rose by 0.4 percent in August after edging up 0.1 percent in July, according to the Labor Department's Bureau of Labor Statistics.

Gasoline prices jumped 3.9 percent, accounting for more than a third of August's monthly CPI increase, and other motor fuels surged 9.6 percent.

The monthly CPI rise was in line with economists' expectations, but the annual inflation rate of 3.4 percent remains unchanged from July.

Excluding volatile food and energy prices, the CPI increased by 0.3 percent, its biggest monthly gain since April.