Inflation sticks at 3.4% in August as energy shocks ripple through prices

August’s CPI rose 3.4% year over year, unchanged from July, as energy costs fueled gasoline and other fuels higher amid Middle East tensions; diesel reached a record $6/gal and jet fuel pushed airfare up, with global oil topping $100 as oil supply risks persist. Economists caution the path back to 2% is still uncertain, suggesting inflation could stay stubborn and prime the Fed for possible rate hikes.