(U.S. Labor Department): U.S. inflation continues to rise in August, driven by fuel prices

Washington, Sept 11 (KUNA) -- Data released by the U.S. Department of Labor on Friday showed that the inflation rate in the United States continued to rise in August for the second consecutive month, driven primarily by higher gasoline prices, which accounted for more than a third of the monthly increase. According to the monthly report issued by the Bureau of Labor Statistics, the Consumer Price Index (CPI), one of the key measures of inflation in the United States, rose by 3.4 percent year-on-year in August, matching the rate recorded in July. The report clarified that the gasoline price index increased by 3.9 percent during August, contributing more than a third to the monthly rise in the all-items CPI. The report’s release comes as yields on U.S. Treasury bonds jumped to their highest levels in years, increasing borrowing costs for consumers, particularly for certain types of loans such as mortgages and auto loans. The U.S. network CNBC quoted economists as saying that the relatively high inflation reading increases the likelihood that the Federal Reserve (the U.S. central bank) will raise interest rates at its monetary policy meeting next week, in an effort to cool economic activity and bring inflation down to its annual target of 2 percent. U.S. inflation has remained above the Federal Reserve’s target level for more than five years. In addition to rising fuel prices, the network noted that the expansion of artificial intelligence data centers has driven up prices for consumer electronics, which in turn contributed to the rise in the CPI in July and August, respectively. (End) R.S.R. / M.N.F.