Financeupdated 1h ago3 min read
Americans In West Tennessee Juggle Rising Costs as September Inflation Tops Forecasts
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September CPI rose 0.6% monthly, 3.7% annual, accelerating inflation. Gasoline prices climbed, fueling higher energy costs and overall inflation.
6 outlets told this the same way.
Inflation hits households
Kathryn Vaughn returned to work at a rural West Tennessee elementary school with rising costs on her plate, and she said she is juggling how to provide for her family with rising costs of "everything."
Inflation in September was above forecasts, and prices rose by 3.7% over the past 12 months, up from 3.4% in the 12 months to August, according to officials numbers released on Wednesday.
Punal Bhavsar said gasoline prices have become the biggest burden, and he told the BBC, "I drive a car that takes premium gas, and unfortunately, in California and the area that I live in, it's almost $6 (£4.5)."
Caitlin Green said ground beef prices rose from $2 a pound to $8, and she said, "[Ground beef] is almost ...not a luxury like steak... but it's just to the point where it's become a luxury; we have to think about it if we're going to purchase it."
Vaughn said, "It's rough out here," and she added, "The cost of everything is insane. Gas to get to work, my insurance costs have gone up, feeding two children and a husband. It's a lot."
CPI, Fed, and elections
Reuters information cited by Boursorama said the consumer price index was expected to rise by 0.6% in September, driven by higher gasoline prices and food costs, and it forecast core inflation excluding food and energy to slow to 0.2% from 0.3% in August.
The September CPI report would be used to calculate the cost-of-living adjustment for Social Security beneficiaries, and the Social Security Administration uses CPI data for urban wage earners and clerical workers to determine the annual cost-of-living adjustment applicable to Social Security and Supplemental Security Income benefits for 2027.
Le Devoir said the U.S. Department of Labor's Consumer Price Index (CPI) rose 3.7% year over year in September, higher than the 3.6% analysts expected, and it said inflation accelerated as energy prices weighed on household budgets.
CME Group's FedWatch tool put the probability at 37.1% that the Fed would raise rates by an additional 25 basis points by the end of October, up from about 22% the day before.
ING economist James Knightley said, "The war in Iran has led to higher fuel costs that affect everyone," as Trump’s Republican Party faced the risk of losing control of Congress on November 3.
Iran war cost estimate
Mark Zandi, chief economist at Moody’s Analytics, said the Iran war has cost the average American household nearly $2,000 since the war began nearly eight months ago, and he wrote, "Nearly $2,000. By my calculation, that is what the Iran war has cost the average American household since the war began nearly eight months ago."
Zandi estimated that the average American household is spending $1,100 more due to higher gas and diesel prices at the pump and higher home heating bills since the war in Iran began, and researchers at the Watson School of International and Public Affairs of Brown University tracked the total consumer burden.
Newsweek reported that Zandi wrote on X, "A gallon of regular goes for $4.37, up from just under $3 before the war. Diesel is above $6, and jet fuel has nearly doubled," and it said the national average gas price was $4.34 per gallon as of Tuesday morning.
The Fiscal Times said Zandi estimated higher interest rates have cost households about $540 each on average, and it said the cost of military operations is the third major component of the new estimate.
Defense Department numbers put the war at about $540 per household, and it said, "the war — which is ultimately paid for by taxpayers, Zandi notes — has cost about $540 per household."