US inflation reached an annual rate of 3.7% in September, according to a report from the Bureau of Labor Statistics. This final inflation report before the midterm elections highlights widespread dissatisfaction with the Trump administration over rising costs of living.

Key Highlights

  • Inflation Rate: 3.7% in September, the highest since May.
  • Consumer Prices: Increased by 0.6% from August.
  • Core Inflation: Slight uptick, excluding volatile energy and food prices.

The increase in prices has been largely driven by the ongoing US-Israel war with Iran, which has caused energy prices to soar. Average gas prices are over a dollar per gallon higher than last year, according to AAA data. Additionally, diesel prices, crucial for domestic supply chains, reached record highs last month.

Context

September’s inflation rate is the highest recorded before a midterm election since 1990, excluding the pandemic period. The economy remains a top concern for American voters, with rising gasoline prices and persistent inflation straining household budgets. According to Brown University, higher energy prices from the Iran conflict have cost American households over $1,020, totaling $133 billion for all consumers.