U.S. inflation accelerated last month as gas prices spiked, squeezing Americans' finances
United States inflation accelerated last month as surging gas prices and climbing core costs squeezed consumer finances. Consumer prices rose 3.4 percent annually in August while core costs climbed, with inflation holding sticky amid rising interest rates and spiking oil prices. The hot inflation report topped forecasts and sent Federal Reserve rate hike odds surging to 90 percent. Economists indicate a September interest rate increase is all but guaranteed following the consumer price index data, leaving the central bank facing persistent price pressures.
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- ✓ Consumer prices rose 3.4 percent annually in August.
- ✓ U.S. inflation accelerated last month as gas prices spiked.
- ✓ Federal Reserve rate hike odds surged to 90 percent following the monthly jump in core prices.
What changed
August consumer prices rose 3.4 percent annually and core costs topped forecasts, accelerating inflation as gas prices spiked.
Live updates
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U.S. Inflation Accelerates as Gas Prices and Core Costs Spike
United States inflation accelerated last month as surging gas prices and climbing core costs squeezed consumer finances. Consumer prices rose 3.4 percent annually in August while core costs climbed, with inflation holding sticky amid rising interest rates and spiking oil prices. The hot inflation report topped forecasts and sent Federal Reserve rate hike odds surging to 90 percent. Economists indicate a September interest rate increase is all but guaranteed following the consumer price index data, leaving the central bank facing persistent price pressures.
Why it matters
Persistent price pressures threaten to force additional monetary tightening from the Federal Reserve. The August consumer price index report landed amid a complex environment of rising borrowing costs and volatile energy markets. Analysts are closely monitoring whether these stubborn increases will necessitate further policy action.
What is confirmed
- Consumer prices rose 3.4 percent annually in August.
- U.S. inflation accelerated last month as gas prices spiked.
- Federal Reserve rate hike odds surged to 90 percent following the monthly jump in core prices.
Still unconfirmed
- Economists say a Federal Reserve rate hike in September is all but guaranteed after the consumer price index report.
What to watch next
- The official Federal Reserve interest rate decision and announcement following its September meeting.
- Subsequent monthly consumer price index reports to track whether sticky inflation trends persist.
confidence 100%Sources used for this update (10)
- Reuters — Gasoline likely to boost US consumer prices in August
- AP News — Inflation report lands amid spiking oil prices, rising interest rates and Fed on fence
- The New York Times — CPI Report Live Updates: Inflation Data to Offer Update on Stubborn Price Pressures
- cnbc.com — Inflation held sticky in August, with consumer prices rising 3.4% annually and core costs climbed
- CBS News — Fed rate hike in September is all but guaranteed after CPI report, economists say
- Bloomberg.com — US Core CPI Tops Forecasts, Bolstering Case for Rate Hike
- WSJ — Inflation Comes In Hot
- PBS — U.S. inflation accelerated last month as gas prices spiked, squeezing Americans' finances
- Yahoo Finance — Fed rate hike odds surge to 90% on monthly jump in core prices
- PBS — News Wrap: August inflation report shows consumer prices up 3.4%
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