Some analysts say the AI boom and rising education costs have exerted an outsized upward effect on inflation; with other sectors broadly in line with expectations, those two items have pushed up headline inflation and prompted markets to price a single Fed rate hike. Others counter that the data instead confirm inflation remains persistent and above the Fed's target, leaving the policy decision squarely with the Fed.

Financial Times reports Iran and Gulf states will meet to push for a Strait of Hormuz agreement.

Hungary will pay HUF 20,000 (about $64) per diesel vehicle by year-end to offset surging fuel costs, the government said. The measure will be paid as HUF 5,000 monthly through December and is targeted at roughly 1 million diesel cars under 150 hp. The prime minister said the support will help those in need without causing fuel shortages or adding HUF 50–100 billion to the budget. Retail petrol and diesel prices have floated since the new government ended price controls in June; a partial closure of the Strait of Hormuz pushed prices to a four-year high and prompted opposition calls for renewed intervention. The government did not give a total cost; if one million owners are eligible the bill would be about HUF 20 billion (around $64 million).