According to the Bureau of Labor Statistics, the Consumer Price Index for September showed a 0.6% month-over-month increase. This pushed the annual inflation rate to 3.7%, up from 3.4% in August.
Gasoline prices were the primary driver of the September increase. The index for gasoline rose 9.1% compared with the previous month, accounting for more than half of the overall 0.6% monthly gain in the CPI. Over the past year, gasoline prices have surged 34.2%, reflecting a sharp rise in fuel costs that consumers feel at the pump. The national average price for a gallon of regular gasoline was $4.33 as of Wednesday morning.
GASOLINE DRIVES MORE THAN HALF OF U.S. INFLATION SURGE Gasoline prices jumped 9.1% in September, while fuel oil, including diesel, surged 15.3%. Energy costs drove more than half of the monthly CPI increase, pushing annual inflation to 3.7%. Elevated October fuel prices signal continued inflation pressure ahead of the November 3 midterms.
Beyond gasoline, the broader energy category also contributed to the inflation uptick. Energy prices overall increased 5.2% in September relative to August. On a year-over-year basis, energy costs were up 20.4%, indicating that the pressure on household budgets extends beyond the pump to other energy-related expenses such as electricity and natural gas.
When the volatile food and energy components are stripped away, the core CPI still showed acceleration.
When the volatile food and energy components are stripped away, the core CPI still showed acceleration. Core inflation, which excludes those categories, rose to 2.6% on an annual basis in September.
BREAKING: 🇺🇸 September CPI inflation rises to 3.7%, above expectations of 3.6%. Core CPI inflation rises to 2.6%, also above expectations of 2.5%. This marks the third highest US inflation reading since September 2023. Headline CPI increased 0.6% month-over-month, up from 0.4% in August, while core CPI rose 0.3%, matching the prior month. Gasoline prices surged 9.1% and accounted for over half of the monthly all-items increase. The energy index jumped 5.2% on the month and is up 20.4% year-over-year. Shelter rose 0.4% month-over-month and 3.2% over the past year. Food was unchanged on the month and up 2.5% year-over-year. US inflation remains elevated.
The inflation data arrived just weeks before the midterm elections, a period when affordability is a top concern for many voters. With gasoline prices climbing sharply and overall inflation edging upward, the data highlights affordability concerns.
The release of the September CPI came shortly before the Federal Open Market Committee’s scheduled meeting to decide on interest rates. The Federal Reserve will have the latest price data for its meeting.
Inflation Rose to 3.7% in September, Hotter Than Expected Energy costs drove inflation, with gasoline prices rising 9.1% from the prior month https://t.co/7Qiwrdpwfw
As of the latest release, the United States is experiencing a 3.7% annual inflation rate, driven largely by a 9.1% monthly jump in gasoline prices and a broader 5.2% rise in energy costs. Core inflation sits at 2.6%.