Inflation in the United States rose for a second month in a row over the summer – underlining the headache facing central banks around the world.
Figures showed inflation hit 3.7 per cent last month – up from 3.2 per cent in July and 3 per cent in June, and above the 2 per cent target.
However, prices are not rising as fast as they were, with inflation in the US down from a peak of 9.1 per cent in June last year.
Price rises: The latest squeeze on US households and businesses was driven by rising fuel prices – something that is likely to be replicated in the UK
The latest squeeze was driven by rising fuel prices – something that is likely to be replicated in the UK when inflation figures are published next week.
But the Federal Reserve – led by chairman Jay Powell – is expected to leave US interest rates on hold next week having raised them 11 times since March last year in a bid to bring inflation back under control.
The Bank of England is also under pressure to pause next week amid fears further rate hikes will tip the economy into recession.
The Bank has raised rates from 0.1 per cent to 5.25 per cent since December 2021 and another hike to 5.5 per cent is firmly on the cards.
