US Inflation Surges Amid Gas Price Spike

Inflation in the US picked up last month as gas prices surged following renewed fighting in the Middle East, according to a Labor Department report released on September 11. The consumer price index rose 3.4% from August 2025 to August 2026, matching July's increase.

The biggest contributor to the jump was gasoline, which saw a 3.9% spike in prices just from July to August and is now more than 27% higher than last year. The nationwide average cost of a gallon of gas on Friday is $4.30, up 7% from a month ago.

The report also showed that airline tickets rose 2.7% on a monthly basis and have soared more than 23% from a year earlier. Hotel room prices climbed 2.4% just from July to August and are 3.2% more expensive than a year ago, while car repair costs rose 1.1% last month and are up 5.2% from a year earlier.

The increase in core prices was larger than expected, which may embolden those Federal Reserve officials who have pushed for higher interest rates. The Fed is widely expected to lift its benchmark interest rate next week.