The US inflation report to be released on Friday may be one of the most influential economic data in recent years. The war in the Middle East has resumed, and oil and gas prices have once again soared. The Federal Reserve is weighing whether to raise short-term interest rates next week. Some officials say the inflation report released on Friday will influence their decisions. Long-term interest rates rose sharply on Thursday due to concerns about rising inflation, driving up mortgage costs. The midterm elections are approaching, and the Trump administration is trying to allay voters' concerns about high prices and interest rate hikes. President Trump promised on Wednesday that if the Republican Party maintains a majority in Congress, a subsidy of 5,000 US dollars will be paid to every American adult. The policy has yet to be approved by the National Assembly and is likely to increase inflation. Treasury Secretary Scott Bessent stepped up efforts to repurchase treasury bonds to reduce long-term interest rates. But even so, the 10-year US Treasury yield climbed to a nearly three-year high on Thursday. On a month-on-month basis, prices are expected to rise 0.4% from July to August. If this increase continues, inflation will continue to be well above the 2% target. Excluding food and energy items, which are highly volatile, core prices are expected to rise 0.2% month-on-month and 2.4% year-on-year; year-on-year data falls slightly from 2.5% in July. However, with core inflation cooling, it may not be possible to change the Federal Reserve's position, and it will be difficult to appease ordinary consumers. The war in the Middle East boosted energy costs. The average price of gasoline across the US rose 7% on Thursday from a month earlier to $4.28 per gallon. On Labor Day, gasoline prices hit a record high for the holiday season, and diesel prices also broke through historical records.

The US inflation report to be released on Friday may be one of the most influential economic data in recent years. The war in the Middle East has resumed, and oil and gas prices have once again soared. The Federal Reserve is weighing whether to raise short-term interest rates next week. Some officials say the inflation report released on Friday will influence their decisions. Long-term interest rates rose sharply on Thursday due to concerns about rising inflation, driving up mortgage costs. The midterm elections are approaching, and the Trump administration is trying to allay voters' concerns about high prices and interest rate hikes. President Trump promised on Wednesday that if the Republican Party maintains a majority in Congress, a subsidy of 5,000 US dollars will be paid to every American adult. The policy has yet to be approved by the National Assembly and is likely to increase inflation. Treasury Secretary Scott Bessent stepped up efforts to repurchase treasury bonds to reduce long-term interest rates. But even so, the 10-year US Treasury yield climbed to a nearly three-year high on Thursday. On a month-on-month basis, prices are expected to rise 0.4% from July to August. If this increase continues, inflation will continue to be well above the 2% target. Excluding food and energy items, which are highly volatile, core prices are expected to rise 0.2% month-on-month and 2.4% year-on-year; year-on-year data falls slightly from 2.5% in July. However, with core inflation cooling, it may not be possible to change the Federal Reserve's position, and it will be difficult to appease ordinary consumers. The war in the Middle East boosted energy costs. The average price of gasoline across the US rose 7% on Thursday from a month earlier to $4.28 per gallon. On Labor Day, gasoline prices hit a record high for the holiday season, and diesel prices also broke through historical records.