US Inflation Hits 3.4% in August
US inflation remained sticky at 3.4% in August, driven by a sharp spike in gasoline and fuel costs that has pushed the probability of a Federal Reserve rate hike to roughly 91%. While food prices showed some stability, record-high diesel costs are raising concerns about broader price pressures ahead of the November midterms.
According to GN markets/inflation (en-US), gasoline costs jumped 3.9% in August, accounting for over a third of the monthly CPI increase, while other motor fuels surged 9.6% as oil prices climbed back above $100. The report also highlights that diesel prices are at record highs, signaling potential future pressure on grocery costs due to transportation expenses.
Source: yahoo.comCNBC notes that core CPI surprised to the upside with a 0.3% monthly gain, pushing market odds for a Fed rate hike next week to approximately 90%. The report highlights broad-based price increases in shelter and transportation services, reinforcing the case for tighter monetary policy despite earlier speculation about a hold.
Source: CNBCAugust consumer prices rose 0.4% month-over-month, driven by a 3.9% spike in gasoline costs.
Source: yahoo.com
