A sharp jump in petrol prices pushed U.S. consumer inflation up by 0.4 percent in August, following a 0.1 percent increase in July, according to the U.S. Department of Labor’s Consumer Price Index (CPI) report released Friday.
On an annual basis, overall consumer prices rose 3.4 percent, matching the year-over-year rate recorded in July. Gasoline prices accounted for one-third of the total monthly inflation increase, jumping 3.9 percent from July and standing 27.4 percent higher than the same period last year.
The surge in petrol costs has been fueled by escalating geopolitical tensions between the United States and Iran, alongside persistent shipping bottlenecks in the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply passes. Global benchmark Brent crude surpassed $100 per barrel on Wednesday and climbed as high as $109 on Thursday before settling near $104.80 on Friday.
At the pump, the American Automobile Association (AAA) reported that the U.S. national average petrol price jumped 15 cents over the past week, rising from $4.15 per gallon ($1.11 per litre) to $4.30 per gallon ($1.14 per litre).
Food costs at grocery stores recorded a modest monthly increase of 0.1 percent, matching the growth rate seen in July. Price increases were reported for specific items, including salad dressing (up 5 percent), eggs (up 2.9 percent), frozen fish (up 1.7 percent), and peanut butter (up 1.1 percent). These gains were offset by price declines in lettuce (down 6.2 percent), apples (down 2.8 percent), milk (down 1.2 percent), sauces and gravies (down 0.8 percent), juice (down 0.8 percent), and coffee (down 0.6 percent).
The CPI report arrives ahead of the Federal Reserve’s upcoming two-day policy meeting, where officials will convene to decide on monetary policy and interest rates. The session marks the central bank’s second-to-last rate-setting meeting before the U.S. midterm elections on November 3.
Financial markets are broadly anticipating further policy tightening. Data from CME Group’s FedWatch tool shows an 86.7 percent probability that the Federal Reserve will raise interest rates to a range of 3.75 percent to 4 percent, up from the current 3.5 percent to 3.75 percent range. The tool places the likelihood of the Fed keeping rates unchanged at 13.3 percent.
Sources
– [Al Jazeera News](https://www.aljazeera.com/economy/2026/9/11/rising-petrol-costs-drive-sharp-inflation-increase-in-us-in-august?traffic_source=rss)
Source: Al Jazeera News
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Story synopsis gathered from: Al Jazeera News — source
