US Inflation Accelerates Amid Record Gas Prices, Diesel Costs Soar

U.S. inflation accelerated in August as gas prices climbed to record highs after renewed fighting in the Middle East.

The Labor Department reported that consumer prices rose 3.4% last month compared with a year ago, matching July's pace but increasing by 0.4% from July to August.

This marks more than five years of stubbornly elevated inflation since the economy emerged from the COVID-19 pandemic.

Meanwhile, US diesel prices soared past $6 per gallon on average, up from $3.70 last year and affecting transportation costs for everyday goods.