U.S. inflation rises to 3.7% in September as gasoline prices jump
In short
U.S. consumer prices rose 3.7% from a year earlier in September, up from 3.4% in August, according to Bureau of Labor Statistics data. Prices increased 0.6% on the month, with a 9.1% gasoline rise accounting for more than half the monthly increase.
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U.S. inflation accelerated in September, with the consumer price index rising 3.7% from a year earlier and 0.6% from August, according to Bureau of Labor Statistics figures reported by NBC News and CNN. The annual rate increased from 3.4% in August and exceeded economists' forecast of 3.6%. The data were released on October 14 in the final inflation report before November's midterm elections. [ 5 , 7 , 9 ]
Gasoline prices rose 9.1% during September and accounted for more than half the monthly increase in overall consumer prices, the bureau said. CBS News reported that energy prices were 20.4% higher than a year earlier and gasoline was up 34.2%. Its report linked rising energy costs to the wars in Iran and Ukraine. Higher diesel prices increase the cost of transporting goods, adding to costs for consumers, CBS News reported. [ 5 , 6 ]
Price pressure extended beyond fuel. Core inflation, which excludes food and energy, rose 0.3% from August and 2.6% from a year earlier, CNN reported. The annual core rate was up from 2.4% in August, according to CBS News. NBC News said housing, clothing and restaurant and takeout food became more expensive, while groceries, medical care commodities and utility gas service declined. [ 5 , 6 , 7 ]
ABC News reported that food prices overall were unchanged from August and 2.5% higher than a year earlier. NBC News put annual wage growth at 3% and said paychecks had not grown faster than inflation since March. The latest figures add to affordability concerns before the elections, while Axios said they make further Federal Reserve interest rate increases more likely. [ 5 , 14 , 17 ]
Why it matters
The figures are the last inflation report before November's midterm elections, with affordability a major voter concern. Axios said the renewed price pressure makes further Federal Reserve interest rate increases more likely.
Key facts
- Annual inflation rose to 3.7% in September from 3.4% in August. [ 6 , 7 , 9 , 10 , 14 , 17 ]
- Consumer prices rose 0.6% from August. [ 5 , 7 , 9 , 10 , 17 , 24 ]
- Gasoline prices rose 9.1% during September and accounted for more than half the monthly CPI increase. [ 5 , 6 , 7 ]
- Core inflation, excluding food and energy, was 2.6% annually and 0.3% monthly. [ 5 , 7 , 9 , 17 ]
- Economists had expected annual inflation of 3.6%. [ 5 , 6 , 7 , 13 ]
Confirmed by several sources
Still unclear
- No open questions in the coverage so far.