The US statistical authority announced on Friday that the inflation rate in the United States remained at 3.4 percent in August 2026. On a month-over-month basis, prices rose by 0.4 percent during the eighth month of the year.
Inflation excluding energy and food, often referred to as core inflation, was 2.4 percent in August, down slightly from 2.5 percent recorded in July.
In contrast, energy prices saw a year-over-year increase of 16.3 percent, following a strong monthly rise of 14.7 percent. The ongoing conflict in the Middle East, which began at the end of February, is likely a central driver contributing to these energy cost increases. Meanwhile, food prices increased by 2.7 percent within the year (up from 3.0 percent in July).
Investors closely monitor US inflation figures because the rate of price increases is a critical indicator for the monetary policy decisions of the Federal Reserve (Fed). Higher interest rates are generally considered detrimental to both the stock market and the real estate sector, partly because savings accounts remain an attractive investment alternative.
