Inflation Hits 3.6% in September Before Midterm Elections

Consumer prices accelerated in September.

The Department of Commerce reported on Thursday that the annual inflation rate reached 3.6%, up from 3.4% in August. Monthly prices climbed 0.5%, marking the largest increase since May. This figure exceeds the 0.3% gain recorded in the prior month.

The Federal Reserve closely monitors this data. The rise in costs occurred less than a week before the midterm elections. Economic concerns have become a central issue in the race. The Iran war contributed to higher inflation by driving up oil and gasoline prices. U.S. oil prices currently exceed $100 per barrel. Before the conflict, prices were under $70 per barrel.

Polls indicate that rising inflation has worsened voter opinions of the economy. Many voters also view President Donald Trump’s handling of cost increases negatively. Trump campaigned in 2024 on a promise to lower prices. He pledged to bring the cost of gasoline below $2 per gallon. The current national average is approximately $4.25 per gallon.

Inflation excluding volatile energy and food categories also increased. Core inflation rose to 3.1% in September from 3% in August. Prices in this underlying category rose 0.3% from August to September. This matches the monthly increase seen in the previous month.