Inflation accelerates to 3.7% in final consumer price report before midterm elections
by Tom Howell Jr. · The Washington TimesConsumer prices rose 0.6% in September after rising 0.4% in August, the government said Wednesday in a report that showed inflation accelerating heading into Election Day.
The Bureau of Labor Statistics said the Consumer Price Index rose 3.7% for the year ending in September, up from the 3.4% annual reading in August.
Energy prices drove the increase as supply shocks in the Middle East caused market turmoil – and political headaches for President Trump, who launched the war against Iran in late February.
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“The index for gasoline rose 9.1 percent in September, accounting for over half of the monthly all items increase,” the bureau said Wednesday in its summary.
Shelter prices were up slightly, while food prices were relatively steady.
The CPI measures what American consumers pay for common goods and services and will help the Federal Reserve determine whether to raise interest rates at its next meeting on Oct. 27-28.
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Central bankers raised rates in September and signaled another hike is coming, though economists bet the Fed will wait until December rather than raise rates before the election.
Inflation surged during the Biden administration and remains above the Fed’s 2% target rate under Mr. Trump, who is dealing with voters’ concerns about high prices heading into the November midterms.
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Voters say the cost of living is their top concern ahead of November elections that will reshape Congress.
Democrats accuse Mr. Trump of failing to tame prices as promised and keeping them elevated through tariffs on imported goods and his war on Iran, which increased oil and gasoline prices by straggling petroleum deliveries from the Middle East.
Americans saw price relief in June, when the CPI fell more than expected. Inflation eased because energy prices fell when tensions cooled in the Middle East.
But the U.S. and Iranian militaries reengaged after the mid-June agreement fell apart, resulting in new energy shocks.
Mr. Trump says prices will come down once the conflict with Iran is over, and that short-term pain is worth the goal of preventing Tehran from having a nuclear weapon.
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Tom Howell Jr.
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