US consumer prices remained high in August, with the annualized inflation rate holding steady at 3.4%, according to data released by the US Bureau of Labor Statistics on Friday. This figure matches the inflation rate recorded in July.
The persistent high prices are attributed to increased energy costs, which rose following the end of the ceasefire between the US and Iran. Core inflation, which excludes volatile energy and food prices, increased to 2.4% in August.
Inflation remains above pre-war levels in Iran, largely due to higher energy prices. On Friday, diesel prices exceeded $6 a gallon for the first time, while average gas prices at the pump were $4.29 a gallon, an increase of $1.10 compared to a year ago, as reported by AAA.
The latest inflation report will be a key consideration for the US Federal Reserve's board meeting next week, where they will decide whether to adjust interest rates. Historically, raising interest rates has been used to help reduce inflation.
Fed governor Christopher Waller stated last week that a rate hike might be appropriate if inflation does not show signs of easing. The Fed's new chair, Kevin Warsh, has indicated the central bank's commitment to combating inflation and achieving price stability.