US Inflation Hits 3.4 Percent While Diesel Tops Six Dollars
Consumer price growth accelerated to 0.4 percent month-over-month. Diesel averages reached a record high of 6.05 dollars per gallon.
U.S. consumer inflation rose to 3.4 percent year-over-year in August. The monthly increase accelerated to 0.4 percent from 0.1 percent in July. Gas price spikes drove this acceleration. The Federal Reserve faces continued pressure to manage these sticky costs. Voter sentiment on economic management remains negative.
Diesel prices hit a national average of 6.05 dollars per gallon. This figure is up from 5.85 dollars the previous week. A year ago, the average was 3.70 dollars. Higher fuel costs are increasing transportation expenses for freight and delivery. Businesses are passing these costs to consumers through added fees.
Wholesale Costs Rise Sharply
Wholesale inflation increased to 5.4 percent year-over-year in August. This is up from 4.8 percent in July. The monthly gain was 0.4 percent after a 0.1 percent rise the prior month. Oil and gas prices remain elevated due to geopolitical conflict. Crude oil prices exceeded 100 dollars per barrel on Thursday.
Housing Market Activity Slows
Existing home sales fell to a 3.98 million unit annual rate. This marks the third consecutive monthly decline. Sales dropped 2 percent from July. The figure is slightly below the 4 million unit estimate from economists. Rising mortgage rates and home prices are deterring buyers.
Mortgage Rates Reach New Highs
The 30-year fixed mortgage rate rose to 6.76 percent. This is a three-week streak of increases. The rate was 6.71 percent the previous week. One year ago, the average was 6.35 percent. Higher borrowing costs continue to suppress housing demand. The source GN markets/inflation (en-US) reports these trends persist.
