U.S. CPI Inflation Jumped to 3.7% in August, More Than Expected

Surging oil prices – WTI crude oil rose to its highest levels of 2023 in August (the move continuing into September) – were a major factor in the rise of headline inflation last month. The U.S. Federal Reserve, though, will likely take comfort in the continuing decline in core inflation rate, which fell to its weakest pace since mid-2021.