US Inflation Hits 5-Month High, Fueling Expectations of Fed Rate Hike

The latest Consumer Price Index (CPI) report from the Labor Department shows that US inflation remains stubbornly high, with prices rising at a 3.4% annual rate in August.

This marks the fifth consecutive month of inflation above the Federal Reserve's target rate of 2%, and is likely to put pressure on the central bank to raise interest rates at its upcoming policy meeting next week.

The increase was driven by higher energy costs, which rose 1.5% in August and now account for over a third of the monthly increase.