US inflation 3.4% in August 2026, CPI +0.4% challenges Fed
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Inflation in the US stayed at 3.4% for August 2026, the same as July and right on target with what experts expected.
The Consumer Price Index (CPI) bumped up by 0.4% from last month.
Even though things aren't getting worse, prices are still higher than the Federal Reserve's goal of 2%, making its next interest-rate move a tough call.
Core inflation 2.4%, gasoline jumps 3.9%
Core inflation, which leaves out food and energy, rose by 2.4% over the year, with a monthly increase of 0.3%.
Gasoline was a big culprit this time, jumping 3.9% in August and making up more than one-third of overall price hikes.
Inflation above 2% complicates Fed decision
With inflation still above target, it's stuck between raising rates or holding steady.