US Inflation Surges as Gas Prices Soar Amid Ongoing Conflict

The US inflation rate picked up in August due to rising gas prices caused by the ongoing conflict in the Middle East.

According to the Labor Department, the consumer price index (CPI) rose 3.4% last month compared to a year ago, similar to July's increase.

However, inflation quickened month-over-month as costs jumped 0.4%, quadrupling the 0.1% registered in July. This has increased pressure on the Federal Reserve to boost its benchmark interest rate next week.

Federal Reserve Chair Kevin Warsh and other officials have signaled that they would need to see continued disinflation before leaving rates where they are, but Friday's report did not deliver that, said Kathy Bostjancic, chief economist at Nationwide.