Inflation Hits 3.7% in September, Driven by Rising Energy Costs

Inflation surged to 3.7% in September, as reported by the U.S. Bureau of Labor Statistics on October 14, marking an increase from August’s 3.4%. This rise in consumer prices comes on the heels of the highest rate since May, which stood at 4.2%. As midterm elections approach, voters express increasing frustration over escalating costs.

Heather Long, chief economist for Navy Federal, highlighted the economic strain, stating, “Inflation has wiped out wage gains for 6 months now. It’s a financial squeeze. Americans are trying to work more hours to make up for it, but many are still falling behind.” The inflation spike is primarily driven by soaring energy prices, with gas prices up 34% year-over-year and fuel oil, including diesel, surging 72% amid ongoing geopolitical tensions.

Several states, such as Georgia, Kentucky, and Illinois, have introduced gas tax relief measures to curb rising costs. North Carolina anticipates a loss of over $362 million in tax revenue due to a gas tax holiday.

In New York, fuel oil prices have increased 67% from last year, with home heating oil reaching $6.21 per gallon. Similarly, Connecticut announced new state aid for home heating due to the high costs of delivered oil.

Beyond energy, food prices outside the home rose 3.5%. Meanwhile, medical care products fell by 3.3%, and used cars and trucks, despite monthly increases, are down 1.5% for the year. Core inflation, excluding food and energy, remains at a modest 2.6%.

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