US Inflation Accelerates to 3.4% in August, Bolstering Rate Hike Prospects

The US Consumer Price Index (CPI) increased by 0.4% in August, following a 0.1% rise in July, according to new figures from the Labor Department's Bureau of Labor Statistics.

This acceleration in inflation was driven in part by a rebound in gasoline prices after two consecutive months of decline.

The core CPI, which excludes volatile food and energy components, rose 2.4% year-over-year in August, down slightly from July's 2.5% increase.

Economists had forecasted the CPI to rise 0.4% over the month and climb 3.4% year-on-year, with the core CPI increasing 2.4% year-over-year.