Understand
US inflation rises to 3.7% in September ahead of midterm elections
Overview
Official figures show US inflation rose more than expected to 3.7% in the year to September, driven largely by higher gasoline prices resulting from Middle East energy supply disruptions. The data comes ahead of midterm elections dominated by cost-of-living pressures.
Key points
- Annual US inflation increased to 3.7% in the year to September, up from 3.4% in August.
- The rise was driven by higher gasoline prices following Middle East energy supply disruptions linked to the US-Israel conflict with Iran.
- Car fuel prices jumped by 34.2% over 12 months and 9.1% in September alone.
- Food inflation remained subdued, flat in September and at 2.5% across the year, while core inflation was 2.6%.
- Research from the Federal Reserve Bank of New York indicates that recently introduced 10% global tariffs have also contributed to price increases for consumer goods.