US Inflation Spikes Amid Gas Price Surge

US inflation rose 3.4% last month compared to the same period in 2025, with gasoline prices spiking as a result of renewed tensions in the Middle East.

The Labor Department reported that the Consumer Price Index (CPI) increased by 0.4% from July, quadrupling the previous month's rate of 0.1%.

Economists worry that higher fuel costs will spill into other parts of the economy, with diesel prices hitting record highs above $6 a gallon and pushing up shipping costs for groceries and other goods.

The Federal Reserve is under pressure to boost interest rates next week, which could lead to higher mortgage and auto loan costs in the months ahead.