Forex
US Inflation Stalls at 3.4% as Diesel Prices Soar Past $6
The US Consumer Price Index (CPI) data for August showed that inflation remained sticky at 3.4% annually, matching the levels seen in July.
A monthly increase of 0.4% suggests that price growth remains aggressive, complicating the economic outlook.
The energy sector is a significant driver of this trend, with US national average diesel prices surpassing $6 per gallon due to ongoing geopolitical tensions and supply chain disruptions.
The Federal Reserve is expected to hike interest rates next week in response to these price pressures, with financial markets currently pricing in a roughly 70% probability of an interest rate hike during the upcoming meeting on September 16.