U.S. consumer prices accelerated in August as gasoline costs rebounded after two consecutive monthly declines, strengthening market expectations that the Federal Reserve will raise interest rates next week.

US inflationFederal Reservestocksbonds

U.S. consumer prices rose at a faster pace in August as gasoline costs rebounded after two consecutive monthly declines, strengthening financial market expectations that the Federal Reserve may raise interest rates next week.

US inflationconsumer pricesFederal Reservegasoline prices

Inflation accelerated in August, increasing the likelihood that the Federal Reserve will raise interest rates.

US inflationFederal Reserveinterest rates

U.S. inflation accelerated last month as gasoline prices surged after renewed fighting in the Middle East, highlighting affordability pressures that are weighing on many voters as the midterm elections approach.

US inflationgas pricesMiddle East fighting

The all-items consumer price index increased 0.4% in August, in line with expectations, while core inflation excluding food and energy came in higher than forecast. Dow Jones consensus had projected a 0.2% rise in the core index.

US inflationconsumer pricescore inflation

The Bank of Russia kept its key rate at 14% as price pressures strengthened in recent months. Governor Elvira Nabiullina said high inflation expectations leave limited room for rate cuts, while the summer acceleration in price growth was driven mainly by fuel-market conditions. The scope for future cuts will be clarified in October.

Bank of Russiainterest ratesinflationmonetary policy

Bank of Russia Governor Elvira Nabiullina says the regulator will not keep the key rate at a level the economy cannot withstand for long, warning that this could raise unemployment and reduce real incomes. She says monetary policy will be eased and the rate lowered under the inflation-targeting framework, after the bank held it at 14%.

Bank of Russiainterest ratesinflation

The Bank of Russia kept its key rate at 14% per annum, ending rate cuts for the first time since June 2025. It cited increased recent price pressures and said future decisions would depend on inflation and inflation expectations. Annual inflation was 6.3% as of September 7; the ruble was nearly flat while the MOEX index fell 1.14%.

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Russia’s central bank kept its key rate at 14%, marking its first pause in roughly a year and a half. It said the economy was growing moderately in the third quarter while price pressures had risen sharply, and forecast inflation at 6.0–7.0% in 2026 before a return to 4.0% in 2027. The decision followed ten consecutive cuts.

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The Bank of Russia left its key rate unchanged at 14% per annum. It said the economy was growing moderately in the third quarter of 2026, while current price pressures had risen significantly in recent months. Future decisions will reflect inflation, inflation expectations and domestic and external risks.

Bank of Russiakey rateinflationRussian economy

The Bank of Russia’s Board of Directors will decide the key rate on Friday. Eighteen of 19 experts polled by TASS expect the benchmark to stay at 14%, as persistent inflation, fuel-supply pressures, a weaker ruble and uncertain budget parameters constrain further easing.

Bank of Russiainterest ratesinflation

US core consumer prices rose 0.3% in August, faster than forecast, raising the prospect of a Federal Reserve rate hike. The report gained added significance after Fed Chair Kevin Warsh said two weeks earlier that the central bank might need to act if inflation did not soon ease.

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Bundesbank President Joachim Nagel said any move to take interest rates into restrictive territory would be “very much dependent” on how energy prices develop.

European Central Bankinterest ratesenergy prices

The European Central Bank is lifting borrowing costs in an effort to prevent high energy prices from turning into persistent inflation. Economists disagree over how high rates need to go and how much damage they could do to growth.

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Diesel, the workhorse fuel powering the global economy, has surpassed $6 a gallon for the first time ever.

diesel pricesenergyUS economy

The price of diesel, a fuel vital to agriculture and industry, has surged to a record $6 a gallon amid an Iran-related supply shock, adding to price pressures as Americans face an affordability crunch.

US dieseloil pricesIran supply shock

U.S. diesel prices have reached a record high of more than $6 per gallon. Fuel supply disruptions linked to the wars in Ukraine and Iran are increasing transportation costs.

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Diesel has reached a record $6 per gallon, threatening to raise costs across the economy. Fourth-generation Iowa farmer Mark Mueller said the trend is endangering one of the country’s strongest economic pillars.

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A look ahead at European and global markets as lenders demand tangible financial backing while a severe bond selloff spreads.

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Australian petrol and diesel prices could rise by 20 to 30 cents a litre in coming weeks after the escalating Middle East conflict pushed Brent crude above $108 a barrel. Investors sold stocks and bonds amid concerns over high energy costs, Donald Trump’s proposed $5,000 dividend and the prospect of further US and Australian interest-rate rises.

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Investors warn that Treasury secretary Scott Bessent’s $6bn bond operation has not been enough to contain the recent surge in borrowing costs.

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