News

Inflation rose to 3.7% last month in last snapshot of consumer prices before the midterms

It’s not just gas.

It’s the car repair, the doctor’s visit, the plane ticket, the computer upgrade, the new clothes.

Inflation rose faster than expected last month, and more broadly than expected, with price pressures extending well beyond the pump, new Bureau of Labor Statistics data showed Wednesday.

The latest Consumer Price Index showed that prices rose 0.6% in September from the month before, bringing the annual rate of inflation to 3.7%, up from 3.4% in August and above economists’ expectations for a 3.6% increase.

A closely watched gauge of underlying inflation also ran hot last month: Core CPI, which excludes volatile food and energy prices, rose 0.3% from August and 2.6% from a year earlier (economists were expecting increases of 0.2% and 2.5%, respectively).

Inflation is moving uncomfortably higher, further eroding Americans’ pay gains, compounding affordability concerns, and keeping the economy – and the Trump administration’s handling of it – in focus for voters in advance of the midterm elections.

“We’re in a world now of inflation at 3.7% and wage gains for the typical American at 3%; that’s a big gap,” said Heather Long, chief economist for Navy Federal Credit Union. “The inflation pressures are in quite a few areas, and it’s tricky to cut back. The anger about the economy that many Americans feel has justification.”