US CPI Rises 0.4% in August Amid Soaring Gas Prices

The US Consumer Price Index (CPI) rose by 0.4% in August, driven mainly by increasing gasoline prices.

This surge brings the year-over-year inflation rate to 3.4%, matching July's figure.

Economists had forecast a 0.4% monthly increase and a 3.4% annual rise, with some predicting even higher numbers.

The core CPI, which excludes food and energy prices, rose by 0.3% in August after gaining 0.2% in July.

This has strengthened market expectations of an interest rate hike by the Federal Reserve next week, with a roughly 70% chance of a 25-basis-point increase.