Inflation Accelerates as Gas Prices Soar Amid Middle East Tensions

The US inflation rate accelerated in August as gas prices surged due to renewed fighting in the Middle East. The consumer price index rose 3.4% year-over-year, matching July's pace, but increased 0.4% month-to-month.

Gasoline prices jumped 3.9% from July to August and are up 27% from a year ago. Diesel prices have hit record highs above $6 per gallon, which could push up shipping costs for groceries and other goods.

Economists worry that higher fuel costs will spill into other areas of the economy, including airline tickets and car repairs. Airline ticket prices rose 2.7% in August and are up 23% from a year ago.