US Consumer Prices Rise 3.7 Percent in September on Higher Gasoline Costs

US consumer prices rose 0.6 percent in September 2026, lifting the 12-month inflation rate to 3.7 percent from 3.4 percent in August, the Bureau of Labor Statistics reported on 14 October. Core prices, which exclude food and energy, increased 0.3 percent for the month and 2.6 percent over the year, up from 2.4 percent in August. Gasoline prices jumped 9.1 percent in September and accounted for more than half of the overall monthly increase. Energy prices as a group rose 5.2 percent for the month and 20.4 percent over the past year. Gasoline is up 34.2 percent from a year earlier.

The acceleration coincides with higher oil prices linked to the US-Iran conflict that began in February. Average US pump prices stood at $4.33 per gallon on 14 October, up from $2.98 on 27 February, according to AAA data. Shelter costs rose 0.4 percent for the month and 3.2 percent over the year. Food prices were unchanged in September and are up 2.5 percent over 12 months. Food at home declined slightly while food away from home rose.

The report arrived weeks before US midterm elections. Bond yields moved higher after the release; the 10-year Treasury yield rose about 9 basis points. Economists noted that the war’s effect on energy costs is visible across the data. Core inflation also came in a tenth of a percentage point above most forecasts, with firmer readings in shelter and some services. The three-month annualised rate for core prices has been running near 3.4 percent.

Wage growth has lagged the inflation rate for several months. Average hourly earnings growth in September was the weakest since 2021. The Labor Department data show broad-based price increases beyond energy, including recreation, used cars, education, airline fares, medical care and apparel. Communication prices were among the few categories that declined.

The September reading puts headline inflation above the level seen in August and keeps the Federal Reserve’s interest-rate path under discussion. No immediate policy change was announced with the data. Analysts will watch subsequent monthly reports for signs that energy-driven gains are feeding into longer-term measures. For households, the immediate effect is higher fuel costs and continued pressure on purchasing power for other goods and services.