US Inflation Holds Steady at 3.4% Amid Higher Oil Prices

The US annual inflation rate remained steady at 3.4% in August, according to data from the Bureau of Labor Statistics.

This marks no change from July's reading, which was also 3.4%. The figure is closely watched by economists and investors as it can impact monetary policy decisions.

Stephen Innes, managing partner at SPI Asset Management, noted that the inflation data came in 'close enough to expectations' that it didn't trigger alarmist reactions. He added that the data has 'enough heat underneath the surface' to make a September interest rate hike by the US Federal Reserve 'much easier to justify.'

Innes believes higher interest rates can dampen demand growth and make dollar-denominated commodities like oil more expensive for holders of other currencies.