September Inflation Reaches 3.7% as Energy Costs Hit Consumers Before Midterms
Consumer prices in September were 3.7% higher than a year earlier, with energy costs from the Iran war driving much of the increase. Gasoline rose 9.1% for the month, while diesel prices have climbed 70% since late February. The report arrives as early voting begins and Republicans defend their House and Senate majorities in the November midterms.
September's annual consumer price increase was 3.7%, with a 0.6% rise from August, slightly above economists' 3.6% forecast. Core prices, excluding food and energy, increased 2.6% year over year and 0.3% monthly. Housing, clothing, and restaurant/takeout costs climbed; groceries, medical care commodities, and utility gas service fell.
Gasoline jumped 9.1% for the month and made up more than half the overall monthly rise. Unleaded gas is up 45% since late February, while diesel is up 70%. Oil has moved from about $80 to over $106 per barrel since August. Annual wage growth was 3%, trailing inflation since March. This release was the last inflation reading before the November elections.
Rising energy and diesel costs could continue to pressure household budgets, especially for lower-income families, while businesses, farms, and shippers may pass along higher transport and production expenses. With wages recently growing more slowly than prices, consumers might cut discretionary spending or take on more debt. As early voting starts, cost-of-living concerns may shape how voters assess candidates and parties, though many other factors could also influence the midterm outcomes.