US Inflation Accelerates as Gas Prices Soar Amid Middle East Tensions

US inflation accelerated in August as gas prices rose sharply due to renewed fighting in the Middle East, increasing concerns about affordability and economic stability ahead of the midterm elections.

The consumer price index (CPI) increased by 3.4% compared to last year, with a monthly increase of 0.4% from July to August, according to the Labor Department's report on Friday.

Core prices, excluding food and energy, rose by 2.4% in August compared to last year, but on a monthly basis, they increased by 0.3%, the largest rise since April.

The higher-than-expected inflation figures will likely support those Federal Reserve officials who advocate for raising interest rates at their next meeting on September 16.