Fed, interest rates and inflation
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The details in the latest Consumer Price Index report could compel the Federal Reserve to raise interest rates.
The number matched analyst expectations and was even with July’s 3.4%.
By Lucia Mutikani WASHINGTON, Sept 11 (Reuters) - U.S. consumer prices accelerated in August, while a key measure of underlying inflation posted its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates next week.
Friday's figures bring the final 2027 COLA calculation closer to completion.
The consumer price index rose to 0.4% on a seasonally adjusted basis putting annual inflation at 3.4%, the U.S. Bureau of Labor Statistics reports.
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A new surge in gasoline prices tied to the resumption of U.S.-Iran hostilities has raised the anxiety of Americans already worried about high inflation. A survey of consumer sentiment fell in early September close to an all-time low after another flareup in inflation and trade tensions.