US consumer prices pick up in August, bolstering chances of interest rate increase

US consumer prices accelerated in August as the cost of petrol rebounded after two straight monthly declines, bolstering financial market expectations that the Federal Reserve could raise interest rates next week.

The Consumer Price Index (CPI) increased 0.4 per cent last month after edging up 0.1 per cent in July, the Labour Department’s Bureau of Labour Statistics ‌said on Friday.

In the 12 months through August, consumer inflation advanced 3.4 per cent after rising by the same margin in...