Inflation Hits 3.6% as Oil Prices Stay Above $100

The Department of Commerce reported that consumer prices rose to a 3.6% annual rate in September. This figure marks an increase from the 3.4% recorded in August. On a monthly basis, prices climbed by 0.5%, a jump that exceeds the 0.3% gain seen in the previous month. It is the highest monthly increase since May.

Crude oil prices in the United States remain above $100 per barrel. This stands in stark contrast to the sub-$70 levels observed before the conflict with Iran began. The war triggered a surge in fuel costs that has kept inflation elevated. The average national price for gasoline now sits around $4.25 per gallon.

President Donald Trump campaigned in 2024 with a promise to lower prices, including reducing the cost of gasoline to under $2 per gallon. Polls indicate that the recent inflation spike has worsened voter opinions of the economy and the president's handling of rising costs. Economic concerns have become a central topic in the current midterm election cycle.

Excluding volatile categories like energy and food, core inflation also accelerated. This rate reached 3.1% in September, up from 3% in August. The underlying monthly price increase was 0.3%, matching the pace of the prior month. The data arrives less than a week before voters head to the polls.

The Federal Reserve closely tracks these indicators to guide monetary policy. The acceleration in September suggests that price pressures remain stubborn despite earlier expectations. The report highlights the persistent impact of energy costs on the broader economy.