U.S. Inflation Accelerates as Gas Prices Surge Due to Middle East Conflict

U.S. inflation accelerated in August due to rising gas prices caused by conflict in the Middle East, according to data released by the Labor Department on Friday. The consumer price index rose 3.4% last month compared with a year ago, the same as in July.

However, on a monthly basis, inflation quickened, as costs jumped 0.4% from July to August, up from an increase of just 0.1% the previous month. This marks the largest monthly increase since April, and is likely to embolden those Federal Reserve officials who have pushed for interest rate hikes.

The conflict in the Middle East has pushed up energy costs, with the nationwide average cost of a gallon of gas on Friday jumping more than 7% from a month ago to $4.30. Hotel room prices and airfares also rose last month while new and used cars got more expensive.