US Consumer Inflation at 3.4% in August, Fed Rate Hike Expected

Washington DC. US consumer inflation stood at 3.4 percent in August, government data released on Friday showed. High prices for a sustained period have increased expectations that the Federal Reserve may raise interest rates next week in the world's largest economy.

The Consumer Price Index (CPI) inflation is still much higher than at the beginning of this year and well above the Federal Reserve's long-term target of two percent.