US Inflation Rises Ahead Of Midterms

Consumer prices in the United States accelerated in September, pushing the annual inflation rate to 3.6%. The Department of Commerce reported this increase on Thursday, noting that the figure is higher than the 3.4% recorded in August. This data point arrives just days before the midterm elections, where economic costs have become a central issue for voters.

On a monthly basis, prices rose by 0.5% from August to September. This monthly jump exceeds the 0.3% increase seen in the previous month and marks the highest rate since May. The acceleration in costs is linked to the war in Iran, which drove up the prices of petroleum and gasoline. U.S. oil prices currently sit above 100 dollars per barrel, a sharp contrast to the sub-70 dollar levels observed prior to the conflict.

Polling data indicates that rising inflation has worsened public opinion regarding the economy and President Donald Trump's management of costs. Trump campaigned in 2024 on a promise to lower prices, including a goal to bring gasoline costs below 2 dollars per gallon. The current national average for gasoline stands at approximately 4.25 dollars per gallon.

Inflation excluding volatile energy and food categories also increased. Core inflation rose to 3.1% year over year in September, up from 3% in August. From August to September, these underlying prices climbed by 0.3%, matching the pace of the previous month.