Rising gas prices are pushing the annual inflation rate to 3.7% – the second consecutive rise THIS YEAR – but experts insist interest rates will remain stable.
Inflation in the United States accelerated for the second consecutive month, reaching an annual rate of 3.7 percent, up from 3.2 percent in August.
Prices rose 0.6% month-on-month through August, mainly due to higher gas prices, which accounted for more than half of the increase.
Housing costs also contributed to the increase, which increased for a 40th consecutive month.
The Consumer Price Index report comes a week before the Federal Reserve’s two-day policy meeting.
Despite the acceleration in inflation, the Central Bank is expected to keep interest rates stable while deciding to raise rates again later in the year.
Core inflation, which excludes volatile prices including food and energy, and is considered a better indicator of long-term trends, remained generally subdued.
Monthly core inflation rose 0.3 percent in August, up slightly from the 0.2 percent rise recorded in July.
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