Inflation Rises as Gas Prices Spike Amid Middle East Conflict

The US inflation rate accelerated in August due to rising gas prices caused by conflict in the Middle East. The consumer price index rose 3.4% last month compared with a year ago, with costs jumping 0.4% from July to August.

Gas prices jumped 3.9% just from July to August, leaving them more than 27% higher than a year earlier. The nationwide average cost of a gallon of gas on Friday leapt more than 7% from a month ago to $4.30.

Other price increases included airline tickets, which rose 2.7% on a monthly basis and have soared over 23% from a year earlier, as well as hotel room prices, which climbed 2.4% just from July to August.