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Fri, 11 Sep 2026

Fri, 11 Sep 2026 US prices remain high as fuel costs squeeze household budgets

Prices in the US rose 3.4% in the 12 months to August, according to the latest official report on inflation.

* US inflation rate rose by 3.4% in the year to August, driven by higher gasoline prices.
* Gasoline prices rose 3.9% last month alone, accounting for more than a third of inflation overall.
* Wages failed to keep up with rising costs, with real average hourly earnings falling by 0.3% over the past year.
* There is growing expectation that interest rates will be increased next week to slow down price rises.
* 85% of traders are betting on a quarter percentage point rate hike.
* Interest rates have been at between 3.5% and 3.75% for five meetings in a row, and higher rates can encourage people to save money by increasing returns.
* Higher oil prices are also making transporting goods more expensive, which can be passed down to consumers through steeper prices for food and other staples.
* The price of benchmark Brent crude oil is hovering above $100 a barrel following recent escalations in the conflict.