US Inflation Remains Stubborn as Diesel Prices Hit Record High

US economic data showed continued pressure from high inflation and fuel costs, straining consumers and businesses. Inflation remained elevated at 3.4% in August compared to a year earlier, with diesel prices reaching a record high of $6.05 per gallon.

The producer price index, which measures inflation before it reaches consumers, rose 5.4% in August from a year earlier. Wholesale prices increased 0.4% from July to August, after a 0.1% increase in the previous month.

In the housing market, sales of previously occupied US homes fell in August to their slowest annual pace in more than a year as buyers dealt with higher mortgage rates and home prices. The average long-term home loan rate in the US rose to its highest level in more than 14 months at 6.76%.

The labour market remained steady, with slightly fewer Americans filing for unemployment benefits last week. US stocks rebounded on Friday after oil prices eased, though markets still struggled to finish the week in positive territory.