Inflation holds steady at elevated level as Iran war pushes up gas prices
Summary
Inflation in the U.S. stayed high in August, mainly because the war in Iran caused gas prices to rise. Inflation was 3.4% higher than a year ago, which is above the Federal Reserve’s 2% target.Key Facts
- Inflation was steady at 3.4% in August compared to the previous year.
- The Federal Reserve aims to keep inflation around 2%.
- Gas prices increased nearly 4% in August from July, making up about one-third of the total price rise.
- Oil prices topped $100 a barrel due to attacks on oil tankers in the Middle East.
- The average price for a gallon of gas in the U.S. is $4.29, over $1.30 higher than before the Iran war.
- Grocery prices did not increase in August, keeping annual grocery inflation at 2.2%.
- The Federal Reserve may raise interest rates soon to try to control inflation.
- The U.S. economy added 162,000 jobs in August and grew in the three months ending in June, showing some strength despite inflation.
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