Trump ratcheted up his pressure campaign this week, calling on Fed Governor Lisa Cook to resign after a Trump administration official alleged that she had committed mortgage fraud. Cook rebuked the push for her to quit, saying she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”

Incomes are still trailing inflation four years after the pandemic-era surge in prices, causing a financial pinch for many households.

Market-based expectations of long-term inflation were rising on Friday, suggesting the Federal Reserve could be underestimating the risk of future price gains and may be committing a policy error if it cuts interest rates.

Beth Hammack, Cleveland Fed president, joins 'Money Movers' to discuss the economy, interest rates, Fed Chair Powell's Jackson Hole speech and the following market reaction.

Federal Reserve Bank of Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip.

This increase was mainly driven by soaring air fares - which jumped by 30.2% - driven by higher school holiday prices - here's why. Meanwhile, food price inflation rose to 4.9% driven by higher prices for goods including beef, instant coffee and orange juice.

British inflation hit its highest in 18 months in July when it increased to 3.8% from 3.6%, official data showed on Wednesday, once again leaving the country with the fastest rate of price increases among the world's largest rich economies.

Ben Plowden, chief executive of lobby group Campaign for Better Transport, said: “Today’s inflation figure could mean a big fare rise for rail passengers next year, especially if the Government decides to go with an above-inflation increase like we saw this year.

Governor Kathy Hochul has said New Yorkers will receive inflation rebate checks of up to $400 this fall despite proposed federal budget cuts that reduced aid to the state.