Surprisingly strong US jobs figures fuel rate rise bets

A boost in hospitality and education employment drove the US economy to create tens of thousands more jobs than expected last month, latest figures suggest.

The number of roles added to the world's biggest economy increased by 162,000 in August, almost triple the 56,000 forecast by analysts.

The stronger jobs figures are likely to add to growing expectations that the Federal Reserve will increase interest rates later this month.

An increase in employment during the final month of the summer in restaurants and bars, as well as in local government education ahead of the new school year, was behind the rebound.

Last week, Kevin Warsh, head of the US central bank, signalled that rates could be hiked if policymakers were not confident price rises were easing for Americans.

Inflation, which measures price increases over time, remains above the Fed's 2% annual target, with prices up 3.4% in the past 12 months, according to the latest data.

The next interest rate decision will be made on 15-16 September. Rates were left unchanged between 3.5% and 3.75% in July for the fifth time in a row, but concerns over inflation remain due to the ongoing conflict between the US and Iran, which has caused as surge in global oil prices.

On Friday, US diesel prices hit an all-time high of $5.85 a gallon on average, compared to $3.71 a year ago.