US Inflation Accelerates Amid Spiking Oil Prices and Rising Interest Rates

The US inflation rate accelerated in August as gasoline prices soared following renewed fighting in the Middle East. The consumer price index rose 3.4% compared to a year ago, with costs increasing by 0.4% from July. Inflation has remained elevated for over five years since the pandemic.

Gasoline prices jumped 3.9% just from July to August and are more than 27% higher than a year earlier. The nationwide average cost of a gallon of gas on Friday is 7% higher than a month ago at $4.30. Diesel prices have hit record highs above $6 a gallon, pushing up the cost of shipping for groceries and other goods.

Airline tickets rose 2.7% on a monthly basis and have soared more than 23% from a year earlier. Car repair costs also increased by 1.1% last month and are up 5.2% from a year ago.