CPI Report Today: Inflation Rose 3.4% in August; Odds of Rate Hike Jump

Live updates

1. 4d ago

   Inflation Hits 3.4% in August as Federal Reserve Rate Hike Odds Jump

   Consumer prices rose 3.4% annually in August, driven by a surge in gas and oil prices, according to the Bureau of Labor Statistics. The Consumer Price Index climbed 0.4% during the month, marking the fastest monthly pace since April. The persistent inflation figure pushed the probability of a Federal Reserve interest rate hike to 72% as policymakers prepare to meet next week. Financial markets reacted with stock futures ticking up and yields edging lower ahead of the official data release.

   Why it matters

   The inflation reading arrives while the Federal Reserve sits undecided on monetary policy amid rising interest rates and stubborn price pressures. Pimco analyst Wilding noted the report sets up potential risk management hikes for the central bank. Officials face a critical decision during next week's policy meeting regarding whether to raise the benchmark interest rate.

   What is confirmed

   • The Consumer Price Index rose 0.4% in August, marking its fastest monthly pace since April.
   • Annual inflation held steady at 3.4% in August.
   • The probability of a Federal Reserve rate hike jumped to 72% following the report.
   • The Federal Reserve meets next week to decide on its benchmark interest rate.

   Still unconfirmed

   • Oracle shares gained 5% on cloud strength despite broader inflation concerns.

   What to watch next

   • The Federal Reserve policy meeting next week to determine whether to raise benchmark interest rates.
   • Subsequent statements from Fed officials regarding risk management hikes following the August CPI data.
   Sources used for this update (8)

   1. AP News — Inflation report lands amid spiking oil prices, rising interest rates and Fed on fence
   2. WSJ — Stock Market Today: Dow Futures Tick Up, Yields Edge Lower as Investors Await CPI Report — Live Updates
   3. The New York Times — CPI Report Live Updates: Inflation Data to Offer Update on Stubborn Price Pressures
   4. cnbc.com — Inflation held sticky in August, with consumer prices rising 3.4% annually and core costs climbed
   5. Bloomberg.com — Watch CPI Sets Up ‘Risk Management Hikes’ for Fed, Pimco’s Wilding Says
   6. www.ibtimes.sg — August CPI Report 2026: US Inflation Hits 3.4% as Gas Prices Surge, Fed Rate Hike Odds Jump
   7. san.com — Inflation holds at 3.4%, raising expectations of a Fed rate hike
   8. blockonomi.com — August CPI Report Holds Steady at 3.4% as Federal Reserve Rate Hike Probability Soars
   confidence 95%