Consumer prices rose 3.6% in September, up from 3.4% in August

The U.S. Department of Commerce reported on Thursday that consumer prices accelerated in September. The annual inflation rate climbed to 3.6%, up from 3.4% in August. This marks the fastest monthly increase since May, with prices rising 0.5% in a single month compared to a 0.3% gain in the prior period.

Oil costs drove a significant portion of the price increases. Following the conflict in Iran, domestic crude oil prices have remained above $100 per barrel. This level is well above the pre-war average of under $70. The surge in energy costs has directly impacted gasoline prices at the pump.

The national average for gasoline now sits at approximately $4.25 per gallon. President Donald Trump campaigned in 2024 on a promise to lower prices, including a goal to bring gasoline costs below $2 per gallon. Current polls indicate that higher inflation has worsened public perception of the economy and the administration's handling of rising costs.

Core inflation, which excludes volatile food and energy categories, also showed an upward trend. The core rate rose to 3.1% in September, up from 3.0% in August. On a monthly basis, core prices increased by 0.3%, matching the pace of the previous month.

The report arrives less than a week before the midterm elections. Economic concerns have become a central issue for voters in this cycle. The Federal Reserve closely monitors these consumer price indicators to guide its monetary policy decisions.