US Inflation Accelerates on Rising Gas Prices, Fed Rate Hike Looms

The US inflation rate accelerated in August due to rising gas prices, which have increased by 3.9% from July to August.

This surge is attributed to ongoing tensions in the Middle East and a recent escalation of fighting in the region.

According to the Labor Department, the consumer price index rose 3.4% last month compared to the same period last year, with a monthly increase of 0.4%, quadrupling the previous month's 0.1% rise.

While core prices excluding food and energy categories increased by 2.4% from August 2022, they rose by 0.3% from July to August, their largest increase since April.

This development has boosted expectations of a Federal Reserve interest rate hike next week, which could lead to higher mortgage and auto loan costs in the coming months.