Business · 2026-10-14 · Afternoon briefing
US inflation accelerates to 3.7% on soaring energy costs
US inflation accelerated unexpectedly in the year to September, with the consumer price index rising to 3.7% from 3.4% in August. The data, released by the Bureau of Labor Statistics, is the final major economic release before next month's midterm elections.
Soaring energy costs were the primary driver. Prices for car fuel jumped 34.2% over the 12-month period, and accounted for more than half of the entire increase in September alone. The cost of fuel oil for home heating was even starker, rising 74.2% over the year. Core inflation, which excludes volatile food and energy prices, stood at a more modest 2.6%.
The figures leave inflation well above the Federal Reserve's 2% target. Price pressures have been compounded by tariffs introduced by President Donald Trump; research from the Federal Reserve Bank of New York found that every one-percentage-point increase in tariffs led to a 0.25% rise in consumer goods prices within a year.
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- Inflation surged in September as U.S. energy costs jumped
- Live Update: Soaring Energy Prices Push Inflation Higher
- Surging gas prices pushed CPI inflation to 3.7% in September. The Fed is watching.
- Energy Spikes Inflation in September, as Annual CPI Hits 3.7%
- September 2026 CPI inflation accelerates to 3.7%: Why prices jumped and the sectors hit hardest
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