US Inflation Holds Steady at 3.4%, Fed Rate Hike Odds Boosted

The US Consumer Price Index (CPI) remained unchanged in August at 3.4%, matching economists' and Wall Street analysts' consensus expectation.

The CPI rose a 0.4% month-over-month, with the 12-month increase also staying at 3.4%, the same as July's figure.

Core inflation, which strips out volatile food and energy prices, increased by an annualized 2.4% in August, in line with consensus estimates.

The report comes ahead of the Federal Reserve's next policy meeting on September 16, where it will decide whether to raise interest rates to combat inflation.