Sept. 11 (UPI) — The consumer price index rose to 0.4% on a seasonally adjusted basis putting annual inflation at 3.4%, the U.S. Bureau of Labor Statistics reported Friday.

Gas prices were a driving factor in accelerating inflation after a 0.1% index in July. BLS attributed one-third of the monthly increase in all items to a 3.9% jump in gasoline.

The jump at the pump followed back-to-back months with a declining index on gasoline. The index in June fell by 9.7% and in July by 2.9% as the United States and Iran mulled a peace agreement.

With the peace deal scrapped, gasoline is on the climb again. AAA reported Friday that the average price for regular gasoline is $4.29 per gallon, up by two cents over Thursday and about 28 cents over a month ago.

Friday’s inflation readings for monthly and 12-month inflation were in line with the Dow Jones consensus estimates. For all items excluding food and energy, the index rose by 0.3% in August, 0.1% higher than estimated.

Food posted a second consecutive 0.1% increase, reaching 2.7% for the year ending in August. The index for meats, poultry, fish and eggs rose by 0.1% for the month with eggs alone rising 2.9%.

Sticky inflation has market traders preparing for the Federal Open Market Committee to raise benchmark interest rates after holding them firm in the 3.5% to 3.75% range for more than three years.

The odds of an interest rate increase are 90%, CME Group’s FedWatch tracker said on Friday.

The Federal Open Market Committee meets on Tuesday and Wednesday for the first time since July.