US Inflation Holds Steady Despite Soaring Energy Prices

US inflation remains steady at 3.4% as energy prices continue to rise.

The Labor Department's data shows that consumer prices increased by 0.4% in August, with a significant surge in gasoline prices driving the broader price index up by 27.4% annually.

Average US retail gas prices reached $4.29 per gallon, an increase of over $1.30 since the start of the war with Iran.

Core inflation, excluding volatile food and energy costs, increased by 0.3% to reach an annual rate of 2.4%, while monthly grocery prices remained flat at 2.2% annual inflation.

Economic analysts noted that elevated price pressures are directly squeezing household budgets and eroding purchasing power.