U.S. inflation accelerated in September, with consumer prices up 3.7% over the year as a sharp rise in gasoline drove more than half of the month’s increase, according to Labor Department data released October 14.
The Consumer Price Index rose 0.6% from August, compared with a 0.4% monthly increase in August; the annual rate had been 3.4% that month. Gasoline prices climbed 9.1% in September, while the broader energy index rose 5.2% for the month and stood 20.4% above its level a year earlier. Food prices were unchanged overall, with grocery prices dipping 0.1% and restaurant prices rising 0.2%; shelter costs increased 0.4%.
Prices excluding food and energy—a measure often used to assess underlying inflation—rose 0.3% for the month and 2.6% over the year, up from 2.4% in August. The annual headline rate came in above the 3.6% economists had expected, while the monthly increase matched forecasts. The figures put renewed focus on energy costs: gasoline was up 34.2% over the year, while fuel oil rose 74.2%.
For households, higher fuel prices can add pressure to budgets; for policymakers, the broader question is whether price increases outside energy will also pick up.