US inflation rises 0.4 percent in August as Pakistan weekly rate jumps

Inflationary pressures intensified across India, Pakistan and the United States in August and early September, driven largely by rising fuel and energy costs linked to renewed conflict in the Middle East. India’s retail inflation accelerated to 4.82% in August from 4.45% in July, an eight-month high and above the Reserve Bank of India’s 4% target for a third consecutive month; food inflation reached 5.95%, while rural inflation exceeded urban inflation. India’s wholesale inflation also edged up to about 9.9% year-on-year, driven by fuel and power, manufactured goods and food, with economists citing crude prices, geopolitical uncertainty, monsoon conditions, currency weakness and food-supply pressures as risks. Pakistan’s weekly consumer price index rose 8.62% year-on-year, led by increases in onions, liquefied petroleum gas, diesel, petrol, wheat flour and electricity, while U.S. consumer inflation increased 0.4% month-on-month and 3.4% year-on-year as fuel and other household costs rose. The Indian data preceded the RBI’s October 5–7 policy meeting, while stronger U.S. inflation increased expectations of Federal Reserve rate increases and raised concerns about borrowing, transport and household costs.