US Inflation Soars Amid Middle East Tensions and Fuel Price Spikes

The US inflation rate accelerated last month as gas prices surged due to renewed fighting in the Middle East, exacerbating affordability concerns just seven weeks before midterm elections.

The consumer price index rose 3.4% year-over-year, matching July's pace, but quickened month-to-month with a 0.4% increase from July, quadrupling the previous month's 0.1% rise.

Federal Reserve Chair Kevin Warsh and other officials have signaled they need to see continued disinflation before leaving interest rates unchanged, but economists worry that higher fuel costs can spill into other sectors of the economy.

Petrol prices are not the only concern, with appliance, car repair, and wireless phone service prices also increasing last month. Diesel prices have hit record highs above $6 a gallon, pushing up shipping costs for groceries and other goods.