Consumer prices in the US remained elevated in August, with an annual inflation rate of 3.4%, unchanged from July. Core inflation, excluding food and energy, rose to 2.4%. The increase in energy prices, driven by geopolitical tensions, has contributed to these persistent inflation levels, with diesel prices surpassing $6 per gallon for the first time.
Concerns over inflation are impacting consumer sentiment and the bond market, as yields on US treasuries reach highs not seen since the 2008 recession. The Federal Reserve's upcoming interest rate decision will be influenced by these inflation figures, with discussions around potential rate hikes gaining traction among officials.