Gasoline likely to boost US consumer prices in August

U.S. consumer prices likely increased in August due to a rebound in gasoline costs, according to Reuters. This would support the expectation that the Federal Reserve may raise interest rates in the upcoming week. The Labor Department's Consumer Price Index report, expected on Friday, will build upon the strong Producer Price Index readings released on Thursday, which are used to gauge inflation for the central bank's 2% target.

The recent rise in oil prices, which have surpassed $100 a barrel, is expected to keep inflation elevated and spread across various sectors. Economists noted that the war-induced energy shock, now in its seventh month, appears to be persistent. Tariffs on imports, particularly against Canada, have also contributed to price pressures.

Gasoline prices rose to an average of $4.192 a gallon in August, up from $4.064 in July. The overall consumer inflation is forecast to have advanced 3.4% over the past year.