U.S. Inflation Surges on Soaring Gas Prices

The U.S. inflation rate picked up in August as gas prices surged due to renewed fighting in the Middle East, according to the Labor Department's latest report. The consumer price index rose 3.4% last month compared with a year ago, matching July's increase.

However, on a monthly basis, inflation quickened, with costs jumping 0.4% from July to August, up from an increase of just 0.1% the previous month.

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 inflation-fighters at the Federal Reserve and has soured many voters on the Trump administration's economic track record.