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August Inflation Rises to 3.4%, Prompting Speculation Over Federal Reserve Interest Rates
Just the facts
The U.S. Bureau of Labor Statistics reported that consumer prices in August rose 3.4 percent compared to the same month in the prior year. The persistent price pressure was driven primarily by gains in housing costs, energy prices, and essential consumer services. Financial markets responded to the inflation data with increased expectations that the Federal Reserve may implement another interest rate hike to curb persistent price growth. Economists noted that higher borrowing costs could slow capital investment while the central bank attempts to return inflation to its target level.
Why this is news
The U.S. Department of Labor released its August Consumer Price Index report, showing annual consumer price inflation reached 3.4 percent.
Sources
This summary is compiled strictly from the original reporting below.