US Inflation Accelerates as Gas Prices Spike

The US inflation rate accelerated in August as gas prices spiked due to renewed fighting in the Middle East, causing financial strain for many Americans.

The consumer price index rose 3.4% last month compared to a year ago, with costs increasing 0.4% from July to August. This marks the third straight decline in core inflation, which excludes volatile food and energy categories.

Economists worry that higher gas prices will spread to other parts of the economy, pushing up shipping costs for groceries and other goods delivered by truck. The Federal Reserve is under pressure to boost interest rates at its next meeting, with some officials signaling that rates can remain on hold only if disinflation continues.