US Inflation Holds at 3.4% as Diesel Tops $6

US consumer inflation accelerated to a 0.4% monthly rate in August, up from 0.1% in July. The annual rate remained unchanged at 3.4%. Diesel prices hit a new record of $6.05 per gallon. Existing home sales fell to 3.98 million units annually, the lowest in over a year.

The Labor Department reported that consumer prices rose 0.4% from July to August. This marks a sharp acceleration from the previous month. Gasoline costs drove the increase as regional conflicts disrupted fuel supplies. The annual figure of 3.4% matches the July reading. These figures indicate persistent price pressure on households.

Diesel Costs Hit Record Levels

National diesel averages reached $6.05 per gallon on Friday. This is a jump from $5.85 the previous week. Prices were $3.70 per gallon at this time last year. Freight and delivery networks rely heavily on diesel fuel. Businesses are passing these costs to consumers through higher shipping fees.

Wholesale inflation also picked up speed in August. The producer price index rose 5.4% year-over-year. This is an increase from 4.8% in July. Monthly wholesale prices climbed 0.4% after a 0.1% rise in July. Oil prices topped $100 per barrel during the week. These upstream costs threaten to keep consumer prices elevated.

Housing Market Shows Continued Weakness

Existing home sales declined 2% from July to August. The seasonally adjusted annual rate dropped to 3.98 million units. This is the slowest pace in more than a year. Sales also fell 1.2% compared to August last year. Mortgage rates rose for the third consecutive week, limiting buyer affordability.

The National Association of Realtors reported the latest sales data on Thursday. Economists had expected a pace near 4 million units. The actual figure came in slightly below that benchmark. This is the third straight monthly decline in transaction volume. Rising mortgage rates and home prices continue to suppress demand.