US inflation picked up as gas prices marched higher due to conflict in the Middle East
U.S. inflation accelerated last month as gas prices spiked in the wake of renewed fighting in the Middle East, underscoring the affordability challenges that are top of mind for many voters with midterm elections now just seven weeks away. The consumer price index rose 3.4% last month compared with a year ago, the Labor Department said Friday , the same as in July. But on a monthly basis,…
Last month in the United States, inflation picked up as gasoline prices surged following renewed conflict in the Middle East. This highlights the affordability concerns that are on the minds of voters as midterm elections approach in just seven weeks. The Consumer Price Index increased 3.4% year-over-year in August, matching the July figure.
However, inflation accelerated month-over-month, climbing 0.4% from July to August, up from a 0.1% increase the previous month. These data indicate that inflation remains stubbornly high, more than five years after prices began their sharp rise as the economy recovered from the COVID-19 pandemic. Persistent inflation has proven a significant challenge for the Federal Reserve's efforts to combat it and has damaged the public's perception of the Trump administration's economic performance.
When food and energy prices are excluded, core prices were 2.4% higher in August compared to a year earlier, a slight decline from July's 2.5% and the third consecutive monthly decline. On a month-to-month basis, though, core prices rose 0.3% from July to August, the greatest increase in recent times.
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