Americans hoping to get some relief from rising costs of consumer goods got a bit of bad news Wednesday: inflation accelerated in September at a faster pace than economists were expecting. Gasoline prices, in particular, delivered an especially nasty blow to consumers' wallets last month, as anyone who's had to fill up their tank recently can confirm.
The Consumer Price Index (CPI) rose 0.6 percent in September and is now up 3.7 percent over the past year, according to the latest figures from the Bureau of Labor Statistics (BLS). That annual increase number was higher than the 3.6 percent economists had predicted, with a noticeable jump from the 3.4 percent rate recorded in August.
BREAKING: Consumer prices rose 0.6% month-over-month, matching economists’ estimates. Year-over-year inflation climbed to 3.7%. That figure came in slightly higher than expected. Analysts attribute the increase largely to higher energy costs. https://t.co/rmBcWbJZ79
— Fox News (@FoxNews) October 14, 2026
And this was more than just food and oil prices jumping all over the place.
Core inflation, which doesn't have food and energy costs factored in, rose 0.3 percent for the month and 2.6 percent year-over-year. Economists had expected increases to look more like 0.2 percent and 2.5 percent, respectively, because core inflation was sitting at 2.4 percent annually just one month ago.
But it's the gas prices that are hard to ignore these days as a key indicator of the overall economy.
Gas prices jumped a whopping 9.1 percent in just one month and are now 34.2 percent higher than they were this time last year. According to the BLS, gas accounted for more than half of the entire monthly increase in the CPI.
Ouch.
There is some good news for American households, though, as food prices remained unchanged from the month prior, and egg prices are now down more than 20 percent from a year ago.
Needless to say, the timing of this less-than-stellar economic news isn't great for Republicans.
With the midterm elections now less than three weeks away, Democrats will surely be busy bleating about the inflation numbers as evidence that voters are still feeling the pinch of the economy.