Petrol Prices Fuel US Consumer Inflation to 0.4% Monthly Gain
The US Consumer Price Index (CPI) accelerated in August as petrol prices rebounded after two straight monthly declines, boosting market expectations that the Federal Reserve could raise interest rates next week.
The CPI increased by 0.4 per cent last month, following a 0.1 per cent gain in July. The Labour Department's Bureau of Labour Statistics reported this on Friday.
Economists polled by Reuters had forecasted the same rate of increase in the CPI for August and a year-on-year inflation rate of 3.4 per cent, which was also met.
The core CPI, excluding food and energy components, rose by 0.3 per cent last month after gaining 0.2 per cent in July. The core CPI increased by 2.4 per cent year-on-year in August, down from a 2.5 per cent gain in July.