US Inflation Rises More Than Expected in August!

US inflation rose more than expected in August. This has strengthened expectations that the Federal Reserve (Fed) will raise interest rates next week.

Consumer prices in the country rose by 0.4% month-on-month and 3.4% year-on-year in August. Economists surveyed by Bloomberg had expected the same figures.

Core inflation increased from 0.2% to 0.3% on a monthly basis. The annual rate, however, fell from 2.5% to 2.4%.

The data show that tariffs, energy prices and investments in data centers are increasing pressure on inflation. As a result, progress toward the Fed’s 2% inflation target has slowed.

Rising energy prices in the US economy are also increasing inflation risks. Oil prices rose above $100 per barrel this week, while diesel prices in the country reached a record high. The acceleration in producer prices also indicates that inflationary pressures are continuing. The Fed will take these indicators into account in its upcoming decision.