Inflation accelerates in August | Northwest Arkansas Democrat-Gazette

U.S. inflation accelerated in August, driven by higher energy costs amid renewed fighting in the Middle East, according to the Labor Department. The consumer price index rose 3.4% year over year, matching July, while accelerating month to month with a 0.4% increase after 0.1% the prior month. The report added pressure to Federal Reserve officials ahead of next week’s policy decision, with CME Fedwatch showing investors giving the Fed a more than 80% chance of a rate hike on Sept. 16. Gasoline prices, diesel above $6 a gallon, and services including car repairs and wireless phone plans also rose. Core prices increased 0.3% in August, the biggest jump since April, while airline tickets climbed 2.7% for the month and 23% annually.