U.S. August CPI Rises 3.4% Year On Year, In Line With Forecasts

U.S. consumer prices rose 3.4% year on year in August, matching market expectations and July's pace, while the monthly increase accelerated to 0.4% from 0.1%, according to ETNet. Excluding food and energy, core CPI rose 2.4% year on year, down from 2.5% in July and in line with forecasts. The data showed overall inflation remained well above the Federal Reserve's 2% target, even as core inflation eased. Reuters data showed the average U.S. gasoline price climbed to $4.192 per gallon in August from $4.064 in July, after energy prices rebounded. The inflation figures are a key input for the Federal Reserve's policy meeting this week, after August producer prices rose 0.4% month on month and 5.4% year on year, reinforcing expectations of further rate hikes.