US Inflation Hits 34 Percent Annual Rate, Fueling Fed Rate Hike Expectations

US inflation has reached a 34% annual rate in August, according to data released by the Bureau of Labor Statistics. This marks a matching pace with July's numbers and solidifies expectations for a Federal Reserve interest rate hike next week to curb rising prices.

The data showed that gasoline prices surged 3.9%, accounting for a third of the overall monthly rise as central bankers monitor compounding price pressures tied to the war with Iran.

Core inflation, excluding volatile food and energy costs, increased 2.4% annually, down slightly from 2.5% in July, while rising 0.3% on a monthly basis.

CME FedWatch showed traders raised the probability of an upcoming rate hike to 90%, following the report.