Middle East Conflict Sends US Inflation Soaring
US inflation accelerated last month as gas prices spiked in the wake of renewed fighting in the Middle East, according to a report from the Labor Department. The consumer price index rose 3.4% last month compared with a year ago, matching July's rate but accelerating on a monthly basis.
The figures show that inflation remains stubbornly elevated more than five years after prices first soared as the economy emerged from the COVID pandemic. Persistent inflation has presented a major challenge for the Federal Reserve and has soured many voters on the Trump administration's economic track record.
Excluding volatile food and energy categories, core prices were 2.4% higher in August than a year ago, down slightly from July's 2.5% but rising 0.3% from July to August, the largest increase since April.