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Inflation jumps to 3.7% as gas and diesel prices squeeze consumers ahead of the midterms

Photo: Robert Nickelsberg

Prices rose across broad swaths of the U.S. economy in September, as high energy costs triggered by the Iran war pushed up prices in many major consumer categories.

The Bureau of Labor Statistics said Wednesday that overall prices rose 3.7% from a year ago, and 0.6% from August. Categories including housing, clothing and restaurant and take out food all saw price increases. Only three major categories saw price declines: groceries, medical care commodities and utility gas service.

“The index for gasoline rose 9.1 percent in September, accounting for over half of the monthly all items increase,” the BLS said in its report.

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WORLDCBS News

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Inflation accelerated across the U.S. in September, rising at an annual rate of 3.7% as energy prices soared, according to new government data. Inflation picked up after two months of holding steady at an annual pace of 3.4%. Core CPI, which excludes the more volatile energy and gas categories, rose 2.6% from a year ago, accelerating from a 2.4% rate in August and higher than economists' forecast of 2.5%. Inflation has risen sharply since the start of the year due to soaring energy prices, sparked by the war in Iran and Russia's war with Ukraine.