US price increases reached an annual rate of 3.7% in September, according to the latest data from the Bureau of Labor Statistics released on Wednesday, The Guardian reported. This figure represents an increase from the 3.4% rate recorded in August, marking the highest inflation rate before a midterm election since 1990, excluding the pandemic era.
These numbers are hitting household budgets hard, especially as we head into the colder months. Gasoline was the primary driver here, accounting for over half of the overall price increases with a 34% jump from last year. Fuel oil prices have surged by 74% compared to last year. Travel isn’t looking much cheaper either, with air travel costs climbing 22.4%.
Price increases this year have been largely driven by the US-Israel war with Iran, which has caused energy prices to soar. According to data from AAA, average gas prices are currently over a dollar per gallon more expensive than they were last year. Diesel, which is essential for keeping our domestic supply chains moving, also hit a record high last month. Research from Brown University suggests these higher energy prices have cost Americans more than $1,020 per household, totaling $133bn for all US consumers.
These rising costs are tied heavily to global instability
The economy is consistently cited as a top issue for voters, and this latest report shows just how much inflation is outpacing earnings. According to a recent survey from Reuters/Ipsos, 78% of Americans blame the current Trump administration’s policies for these price hikes. This sentiment even extends to the president’s base, with 57% of Republicans who support Donald Trump expressing blame toward the administration.
President Trump has attempted to shift the focus to external factors. In a post on social media on Tuesday, he claimed that Yemen’s Houthi group was attacking Saudi Arabia in a deliberate attempt to influence the elections. He wrote, “They’ve emerged again, probably at the behest of Iran … in a very nasty way, hitting Saudi Arabia, and purposefully trying to drive up Oil Prices, probably prior to the U.S. Elections — NOT NICE.”
During a rally in Wasilla, Alaska, later that same day, the president defended his economic record, describing his support for families as “substantial.” He noted, “Every time they want to try and get me, they say ‘affordability’,”
These elevated prices are putting significant pressure on the Federal Reserve to continue using interest rates as a tool to cool the economy. The Fed already raised rates last month for the first time since 2023. This has direct consequences for everyday borrowing, as the 30-year mortgage rate has climbed to 7.40%.
Richard Carter, who serves as the head of fixed interest research at Quilter Cheviot, summarized the situation in a statement. “Inflation in the US has come in higher than expected, in a blow to Donald Trump ahead of November’s midterms,” Carter said. “The president has been desperate to show he is getting inflation under control and providing the environment for rate cuts, even going so far as allowing Russian diesel back into the market, but those moves are proving too little too late as the war in the Middle East continues to have a grip on the global economy.”
The White House did not immediately respond to a request for comment regarding the latest report.
Published: Oct 14, 2026 03:35 pm