U.S. Inflation Stayed Hot in August, Setting Up Rate Hike Showdown
Prices at the pump and elsewhere continued to climb in August, according to new inflation data released Friday by the Bureau of Labor Statistics.
The report found that the Consumer Price Index (CPI) rose 0.4 percent for the month, in line with Wall Street forecasts, putting annual inflation at 3.4 percent. Core prices, excluding food and energy, rose 0.3 percent.
The report is the last major inflation reading the Federal Reserve will see before its policy meeting next week, where officials will consider whether to raise interest rates for the first time in three years.
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Gasoline prices surged 3.9 percent in August and accounted for more than a third of the overall increase. The broader energy index rose 2.1 percent as the Iran War continues to roil markets. Grocery prices largely held flat for the month while shelter costs rose 0.3 percent.
Despite economic uncertainty, stocks rose on Friday, with the Dow, S&P 500, and Nasdaq all climbing higher on opening.
