US Inflation Holds at 3.4% in August as Gasoline Prices Stay Elevated

U.S. inflation held at 3.4% in August, while gasoline prices remained elevated. According to Sina Finance, the U.S. Labor Department said the reading matched analysts' expectations and was unchanged from July's 3.4%. The report comes as the Federal Reserve remains divided over whether to raise rates at its policy meeting next week. According to Sina Finance, three officials dissented at the Fed's July meeting in favor of a rate increase, and some others have since said they would also support a hike if inflation does not improve. According to Sina Finance, before Friday's report, interest-rate futures priced in a two-thirds probability that the Fed would raise its overnight policy rate target range by 25 basis points. Economists said inflation pressure is also coming from the expansion of the artificial intelligence industry, which has created shortages of memory and storage chips and pushed up prices for some consumer electronics. Apple is raising prices to offset higher costs, and its new foldable phone launched this week with a starting price of $1,999. Economists also said 2026 tariff policy is adding some upward pressure on prices, while some companies, including apparel retailers, are delaying passing higher costs on to consumers until the new year. New tariffs on Canadian goods could further lift prices for some consumer products in the coming months. Diesel prices reached a record average of $6.06 per gallon on Friday, up from $3.71 a year earlier.