Inflation Holds Firm at 3.4% Ahead of Fed Rate Decision

US inflation has held steady at 3.4% in August, marking no change from July's reading and continuing to outpace the Federal Reserve's 2% target.

The stubbornly high inflation rate is a source of concern for policymakers ahead of next week's closely watched interest-rate decision.

Energy prices have emerged as a major driver of renewed inflationary pressure, with oil prices climbing above $100 a barrel amid escalating conflict involving the United States and Iran. Gasoline and diesel costs have also surged, with diesel prices jumping 24.1% in August alone.

The latest producer-price index (PPI) data showed wholesale prices rose 5.4% year-on-year in August, accelerating from 4.8% in July.