US Inflation Accelerates Amid Rising Gas Prices
The US inflation rate accelerated in August due to rising gas prices following renewed fighting in the Middle East. According to the Labor Department, the consumer price index rose 3.4% last month compared to a year ago.
Gas prices jumped 3.9% from July to August and are more than 27% higher than a year earlier. The nationwide average cost of a gallon of gas is $4.30, 7% higher than a month ago.
The Federal Reserve is under pressure to raise its benchmark interest rate next week as inflation remains stubbornly elevated. Fed officials have signaled they would need to see continuing disinflation to leave rates where they are.
Excluding food and energy categories, core prices rose 2.4% in August compared to a year ago, down slightly from July's 2.5%. However, on a monthly basis, core prices increased by 0.3%, the largest rise since April.