U.S. Consumer Inflation Surges to 3.4 Percent Amid Rising Energy Costs

U.S. consumer inflation has exceeded the central bank's target for last month, fueling expectations of a rate hike.

The Consumer Price Index (CPI) rose 3.4 percent compared to August last year and increased by 0.4 percent from the previous month.

Core consumer prices, which exclude energy and food costs, rose 0.3 percent from the previous month, slightly beating market expectations.

The prolonged war in the Middle East has led to record-high diesel prices in the U.S., surpassing $6 per gallon.

Rising oil prices continue to heighten inflationary pressure, deepening the Federal Reserve's concerns.