US Inflation Rises Amid Soaring Gas Prices

US inflation accelerated in August as gas prices surged following renewed fighting in the Middle East. The consumer price index rose 3.4% last month compared to a year ago, with costs jumping 0.4% from July.

The increase in core prices was 2.4%, down slightly from July's 2.5%. However, on a monthly basis, core prices rose 0.3% from July to August, the largest increase since April.

Fed officials have signaled they need to see continuing disinflation before leaving interest rates unchanged. With Friday's report, there is increased pressure on the Federal Reserve to boost benchmark interest rates next week, which could lift mortgage and auto loan costs in the months ahead.