US Consumer Inflation at 3.4% in August, Fed Rate Hike Expected
Summary
US consumer inflation held at 3.4% in August, keeping pressure on the Federal Reserve to consider another interest-rate hike next week. Rising fuel prices have pushed up transport and other costs, while the cost of living remains a major issue heading into the November midterm elections.
Key Points
- US consumer inflation stood at 3.4% in August, still well above the Federal Reserve’s 2% target.
- Markets now expect the Fed to raise interest rates next week if price pressures do not ease.
- Fuel prices drove about one-third of the monthly increase, with gasoline up sharply since the Iran war began.
- Rising living costs are becoming a key political issue ahead of the November midterm elections.
