US Inflation Rate Accelerates Amid Gas Price Spike

The US inflation rate accelerated in August due to rising gas prices caused by renewed fighting in the Middle East. The consumer price index rose 3.4% last month compared to a year ago, with costs increasing 0.4% from July.

Gasoline prices jumped 3.9% just from July to August and are more than 27% higher than a year earlier, with the nationwide average cost of a gallon of gas reaching $4.30.

The rising fuel costs have pushed up other expenses, including car repairs, airline tickets, and hotel room prices. The Federal Reserve is expected to raise interest rates next week in response to the inflationary pressures.