August Inflation Numbers Fuel Rate Hike Speculation

Consumer prices rose by 3.4% annually in August, matching July's pace and strengthening the case for a Federal Reserve rate hike to combat inflation.

The latest Consumer Price Index from the Bureau of Labor Statistics shows that prices increased by 0.4% on a monthly basis, with gasoline prices accounting for nearly a third of the rise at 3.9%.

However, when stripping out food and energy costs, so-called core inflation rose to 2.4%, down from 2.5% in July.

The largest price increases were seen in tech sectors, with computer software and accessory prices rising by 25.4% over the past year, while smartphones saw a decline of 12.2% due to price hikes announced earlier this week by Apple.