US inflation holds steady at 3.4% in August

Gasoline prices jumped 3.9% in August, accounting for more than one-third of the monthly increase in consumer prices.

The US Labor Department’s Bureau of Labor Statistics said Friday that the annual increase in consumer prices held steady in August, in line with expectations, while monthly inflation accelerated amid higher energy prices.

The gasoline index jumped 3.9% in August, accounting for more than one-third of the overall monthly increase in prices for all goods and services, while the broader energy index rose 2.1% over the same period.

Inflation remaining above the Federal Reserve’s 2% target is likely to add to cost-of-living pressures and support the Fed’s monetary tightening path, particularly as energy prices continue to surge.