Inflation in the U.S. was unchanged at 3.4% in August and matched the consensus expectation of economists and Wall Street analysts.
The Consumer Price Index (CPI) in America rose a 0.4% month-over-month, putting the 12-month increase at 3.4%, the same level it was at in July of this year.
Both readings were in line with the consensus forecasts of analysts and economists.
Stripping out volatile food and energy prices, core inflation rose an annualized 2.4% in August, also in line with consensus estimates.
The report is the last major inflation reading before the U.S. Federal Reserve holds its next policy meeting on Sept. 16 and decides whether to raise interest rates.
Financial markets are currently pricing in a 70% chance that the U.S. central bank raises interest rates 25-basis points as it tries to get inflation back down to its 2% annualized target.
Inflation in the U.S. has been above the Federal Reserve’s 2% target for more than five years.
The Consumer Price Index for August does not account for the recent sharp rise in energy prices. Over the past week, crude oil prices have risen back above $100 U.S. a barrel.
It is the first time that oil prices have been above $100 U.S. a barrel since May of this year, and such an increase is likely to have inflationary ripple effects across the economy.
The August inflation report showed that energy prices continue to be a factor in the overall inflation picture in America.
Gasoline prices at the pumps rose 3.9% year-over-year in August, accounting for more than one-third of the index’s gain. The overall energy index was up 16% from a year ago.
Also, contributing to inflation in August were food prices, which accelerated 2.7% annually.
Another factor was a 0.3% rise in shelter costs across the U.S., which had moderated over the previous two months.
U.S. stock indices were sharply higher in early trading on Sept. 11 following news that inflation came in as expected for August.
