U.S. consumer prices rose at an accelerated monthly pace in August, driven by a surge in energy costs, reinforcing expectations of a Federal Reserve interest rate hike next week.
The consumer price index (CPI) increased by a seasonally adjusted 0.4 percent for the month, putting the 12-month inflation rate at 3.4 percent--the same rate in July, the U.S. Bureau of Labor Statistics reported Friday.
The core CPI, which strips out volatile food and energy components, came in at 2.4 percent. Both figures confirmed the prevailing narrative among investors that inflation in the United States remains too high for the central bank to keep rates at their current levels.
The August CPI report serves as the final major inflation indicator the Federal Reserve will review before its two-day policy meeting next week, which will conclude Wednesday with a vote on its key interest rate.
Following the data release, the CME Group's FedWatch tool showed an 88.8 percent probability that the Federal Reserve will raise interest rates by 25 basis points this month.
US CPI annual rise holds at 3.4 pct in August
The U.S. military has forced 99 commercial vessels to change course in the Gulf region as it enforces its blockade of Iranian ports, the U.S. Central Command (CENTCOM) said Friday in a social media post.
Earlier the day, Iranian Foreign Ministry spokesman Esmaeil Baghaei said that foreign ministers from Gulf littoral states are scheduled to meet in Oman on Monday to exchange views on regional issues, including talks between Iran and Oman on designating safe routes in the Strait of Hormuz.
He said the meeting will be attended by Iran, Iraq and other Gulf littoral states, adding that he hoped it would prepare the ground for improving understanding among regional countries and contributing to joint regional security.
A day earlier, the U.S.-led Joint Maritime Information Center (JMIC) said in a notice that maritime security conditions in the Middle East remained tense, with the maritime security threat level in the Strait of Hormuz still rated as "severe."
The notice also warned of a high likelihood of attacks on vessels amid the current security situation.
US forces 99 vessels to alter course amid Iran blockade
