US consumer prices rose 0.4% in August and 3.4% over the year, with petrol accounting for more than a third of the monthly increase. Core prices, excluding food and energy, rose 0.3% on the month and 2.4% annually. The figures, alongside a jump in households’ one-year inflation expectations to 4.6% from 4.0%, strengthen the case for the Federal Reserve to raise rates this week despite weakening consumer sentiment. Futures ended Friday pricing about an 85% chance of a quarter-point rise, up from roughly 70% before the data; the two-year Treasury yield rose six basis points to 4.62%, while the S&P 500 gained 0.9% as oil briefly retreated.