Fed Rate Hike Case Bolstered by August Inflation Data

Consumer prices rose at an annual rate of 3.4% last month, matching July's pace according to the latest Consumer Price Index from the Bureau of Labor Statistics.

This increase likely strengthens the case for a Federal Reserve rate hike to combat inflation and prevent price rises from becoming more entrenched.

Gasoline prices, up 3.9%, accounted for one-third of the monthly price rise, with food and energy costs removed, core inflation rose 2.4% in the 12 months ending in August.