Financeupdated 1h ago2 min read
U.S. Inflation Reaches 3.7% in September as Gas Prices Drive CPI Increase
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CPI rose 3.7% year over year in September, up from 3.4% in August. Gasoline prices drove the increase, with energy prices rising about 5% in September.
13 outlets told this the same way.
CPI at 3.7%
The U.S. Bureau of Labor Statistics reported that year-over-year inflation reached 3.7 percent in September, while the monthly increase in the Consumer Price Index (CPI) was 0.6 percent.
The Bureau of Labor Statistics said gas prices explained more than half of the increase, rising 9.1 percent month over month.
The Federal Reserve watched the inflation data as the core CPI rose 2.6 percent year over year and 0.3 percent compared to the previous month.
The DW report said the CPI varied by 0.4 percent in the previous month, and it said August inflation stood at 3.4 percent year over year.
The Federal Reserve did not plan to accelerate its possible rate-hike timetable after lifting its policy rates at its last meeting, according to DW.
Gasoline drives the surge
The pace of price rises increased to 3.7%, up from 3.4% in the 12 months to August. Inflation was above forecasts, driven by higher gasoline prices which have risen following disruption to Middle East energy supplies due to the US-Israel conflict with Iran. Car fuel prices jumped by 34.2% over 12 months, and they jumped by 9.1% in September alone.
Energy inflation was up by 20.4% over the year as prices for fuel oil, energy services and electricity climbed. Fuel oil, used in home heating, was up 74.2% over the year.
Elections and rate bets
The rise in the cost of living came just ahead of the midterm legislative elections on November 3, with President Donald Trump and his Republican Party at stake over control of Congress, according to DW. The elections are being fought over cost of living pressures across the US. The Social Security Administration announced that Social Security benefits including old age, survivors and disability insurance would rise by a similar amount - 3.6% - in 2027.
The cost of living adjustment will take effect in January for about 72m people, while increased payments for the 7.2m receiving the supplemental security income will start on 31 December. Officials from the Bureau of Labor Statistics measure inflation through the consumer price index (CPI), which tracks the price changes of hundreds of day-to-day items including fresh food, gasoline and medical services.