Inflation accelerates in August | Arkansas Democrat Gazette

Inflation in the United States accelerated in August as gasoline prices rose after renewed fighting in the Middle East, adding to affordability concerns ahead of midterm elections about seven weeks away. The Labor Department reported the Consumer Price Index climbed 3.4% last month versus a year earlier, matching July, but month to month costs jumped 0.4%, quadrupling the previous 0.1% rise. The report keeps inflation elevated more than five years after the earlier price surge tied to the post-pandemic recovery. The data increase pressure on the Federal Reserve, with officials seeking continued disinflation before leaving rates unchanged. Gasoline gains weren’t the only issue: appliance, car repair, and wireless phone service prices also rose. Diesel topped $6 a gallon, airline tickets rose 2.7% monthly and 23% year over year. Core prices excluding food and energy increased 0.3% in the month and 2.4% versus a year ago. Markets give an 80%+ chance for a Sept. 16 rate hike.