US inflation rises 0.4 percent in August as Pakistan weekly rate jumps
11 sourcesUpdated Sep 12, 2026
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Inflation accelerated in August in the United States, with consumer prices rising 0.4% from July and 3.4% from a year earlier. Higher gasoline and diesel costs drove much of the increase, while airline fares, appliance prices, auto repairs and wireless services also rose; core inflation increased 0.3% for the month but eased to 2.4% annually. The data strengthened expectations that the Federal Reserve will raise interest rates, potentially increasing borrowing costs for mortgages, auto loans and other credit. Pakistan is also experiencing mounting consumer pressure, with weekly inflation up 8.62% year over year as onions, liquefied petroleum gas, diesel, petrol, wheat flour and electricity posted sharp increases, although prices for some staples such as potatoes, chicken, sugar and eggs declined.
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Core inflation easing slightly is welcome but the overall numbers still point to another Fed rate increase soon.
Pakistan's weekly price spike led by onions and petroleum shows cost pressures are far from easing for most families.
Gas prices pushing the US CPI up 0.4 percent will keep hurting household budgets until supply improves.
