The Bureau of Labor Statistics reported Friday that the annual U.S. inflation rate held at 3.4% in August, unchanged from July, while diesel fuel prices reached $6 a gallon for the first time on Thursday, according to the Associated Press. Separately, the University of Michigan's Surveys of Consumers found that consumer sentiment dropped from 51.7 in August to 47.8 so far in September, the second-lowest level recorded since the survey began in 1952.
U.S. inflation holds at 3.4% in August as diesel hits $6 a gallon for first time
The Bureau of Labor Statistics reported Friday that the annual U.S. inflation rate held at 3.4% in August, unchanged from July, while diesel fuel prices reached $6 a gallon for the first time on Thursday, according to the Associated Press. Separately, the University of Michigan's Surveys of Consumers found that consumer sentiment dropped from 51.7 in August to 47.8 so far in September, the second-lowest level recorded since the survey began in 1952.
August inflation of 3.4% was below the 4.2% recorded in May. Food categories including meat, poultry, eggs, and dairy rose slightly, from 0.1% to 0.3%, the Bureau of Labor Statistics data showed.
Lettuce prices continued to move in the opposite direction, a trend the source attributed to a cyclospora parasite outbreak. The Food and Drug Administration declared the outbreak over on Friday after nearly 13,000 people across 21 states were sickened, at least 570 were hospitalized, and two died.
Joanne Hsu, director of the University of Michigan Surveys of Consumers, said the drop in sentiment reflected expectations of greater financial pressure: 'With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come.'
Houthi rebels backed by Iran reportedly captured a strategic island at the southern entrance to the Red Sea on Friday, according to officials cited in the source. The source states this development opens a new front in what it describes as the Iran war and further threatens oil exports from Saudi Arabia, with fuel prices expected to rise further globally.
The source also reports that President Donald Trump has offered every American adult $5,000 if Republicans maintain control of Congress ahead of midterm elections. The source states that critics have characterized the offer as a blatant attempt at bribery or a distraction from fighting in the Middle East.
- The source does not state what Federal Reserve interest rate decision is expected or by how much rates may rise.
- The source does not identify which officials announced the Houthi capture of the Red Sea island.
- The source does not state Trump's stated rationale for the $5,000 payment offer beyond the source's own characterization.
- The source does not state the current national average price of gasoline, only diesel.
- The source does not state the name or location of the island captured by Houthi forces.
- The source does not provide a response from the Trump administration or Republican Party to the bribery characterization.