US CPI Accelerates as Gasoline Prices Rebound
The US Consumer Price Index (CPI) rose by 0.4% in August after edging up 0.1% in July, according to data released by the Labor Department's Bureau of Labor Statistics on Friday, September 11.
This increase brings the annual inflation rate to 3.4%, matching the previous month's pace. The core CPI, which excludes volatile food and energy components, rose 0.3% last month after gaining 0.2% in July. The year-over-year core CPI increased 2.4% in August.
The rebound in gasoline prices contributed to the acceleration in consumer inflation. Oil prices climbed above $100 a barrel on Thursday, while diesel prices are at record highs, suggesting that inflation will remain elevated and broaden out.
Economists have been expecting a rate hike by the Federal Reserve next week, with financial markets pricing in a roughly 70% chance of a 25-basis-point increase. However, Fed Governor Christopher Waller's comments last week had diminished some expectations for a rate hike.