Middle East Conflict Drives US Inflation Higher

US inflation accelerated last month due to rising gas prices caused by conflict in the Middle East. The Labor Department reported that the consumer price index rose 3.4% compared to a year ago, matching July's rate. However, on a monthly basis, inflation quickened, with costs increasing 0.4% from July to August, up from an increase of just 0.1% in the previous month.

The renewed fighting in the Middle East led to higher gas prices, which contributed to the uptick in inflation. This development comes as midterm elections approach, with affordability concerns top of mind for many voters.