Inflation in the US has accelerated for a second consecutive month to a 3.7 percent annual rate – up from 3.2 percent in August. 

Prices rose 0.6 percent month-on-month to August, driven mainly by a jump in gas prices – which accounted for over half of the increase.

Shelter costs also contributed to the rise, which went up for the 40th consecutive month. 

The consumer price index report comes a week before the Federal Reserve‘s two-day policy meeting. 

But despite the acceleration in inflation, the Central Bank is expected to hold interest rates steady while deciding whether a further rate hike later in the year will be needed to combat inflation.

Core inflation, which strips out volatile prices including food and energy and is deemed a better gauge of long-term trends, stayed mostly mild. 

Monthly core inflation rose by 0.3 percent in August – up marginally from a 0.2 percent increase in July. 

For the 12 month ending in August, core inflation slowed to 4.3 percent – down from 4.7 percent last month. 

This is a breaking news story. More to follow.  

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