Inflation Holds Steady at 3.4%, Despite Escalating Oil Prices

The August Consumer Price Index (CPI) report revealed that inflation remained steady at 3.4% year-over-year, matching July's pace but slightly higher than economists' forecasts.

Economists polled by FactSet had predicted a 3.3% increase in inflation for August.

Energy prices continue to rise, with diesel hitting a record $6.06 per gallon on Friday, up over 60% from $3.71 a year ago, according to AAA.

Fed Chairman Kevin Warsh has emphasized the need to rein in price pressures, which he considers a top priority for the Federal Reserve.