US Inflation Stays High Amid Iran Conflict

US inflation remains elevated due to rising energy costs tied to the U.S.-Iran conflict. The Labor Department reported that producer prices increased 0.4% in August, following a 0.1% rise in July. Producer prices were up 5.4% from a year earlier.

Diesel prices jumped 24.1% during the month and 78% from a year earlier, increasing costs for shipping and other businesses. Airfares and hospital services also rose.

The Consumer Price Index (CPI) rose 0.4% in August and 3.4% over the past year. Gasoline prices increased 3.9% during the month, while core prices, excluding food and energy, rose 0.3%.

Pres. Donald Trump has said he expects the conflict with Iran to end after the elections and has indicated oil prices may not ease until then. The inflation reports have strengthened expectations that the Federal Reserve could raise interest rates next week.