U.S. producer prices rise 0.4% in August matching forecasts

U.S. consumer prices rose 0.4% in August, accelerating from July’s 0.1% increase, while annual CPI inflation held at 3.4%. Gasoline prices jumped 3.9% as oil prices exceeded $100 a barrel amid escalating Middle East tensions, while higher shelter, airline fares, communications, education and used-car costs also pressured households. Core CPI rose 0.3% for the month and 2.4% from a year earlier, remaining above the Federal Reserve’s 2% target despite a slight annual slowdown. Producer prices rose 0.4% monthly and 5.4% annually, driven largely by energy costs, particularly diesel, raising concerns that higher fuel prices could spread through transportation and consumer goods. Financial markets placed roughly an 87%–90% probability on a quarter-point Fed rate hike at the September 16 meeting, while elevated inflation continued to worsen affordability concerns.