US inflation rose to 3.7% in September in blow to Republicans before midterms
Final inflation report before voters go to polls comes amid widespread anger over cost of living under Trump Send us your questions on how the US economy is shaping the midterm elections Republicans are entering the midterm elections with the highest rate of inflation since the spring, according to a government report released on Wednesday. US price increases reached an annual rate of 3.7% in…
The latest government report ahead of the midterm elections reveals that US inflation rose to 3.7% in September, intensifying Republican challenges ahead of the vote. This marks the highest rate since the spring, up from 3.4% in August, and exceeds the three-year peak of 4.2% reached in May. Gasoline prices, accounting for more than half of the overall increase, surged 34% from the previous year, while fuel oil prices climbed by 74%.
Air travel costs also rose by 22.4%. Overall, consumer prices increased by 0.6% from August. Core inflation, excluding volatile energy and food prices, rose by 0.3% to 2.6%. The recent inflation surge can largely be attributed to the US-Iran war, which has pushed energy costs to unprecedented levels. Average gas prices remain over a dollar more per gallon than last year, and diesel, essential for domestic supply chains, hit record highs last month.
September's inflation rate is the highest before a midterm election, excluding the pandemic, since 1990. The economy is a top issue for voters, with rising fuel costs and persistent inflation straining household budgets. Higher energy prices from the Iran conflict have cost Americans over $1,020 per household and a total of $133 billion nationwide.
Anger is expected to focus on Republicans, who control Congress and the White House. A recent survey found that 78% of Americans blame the current Trump administration for inflation outpacing their earnings, with 57% of Republicans supporting Trump. Trump has attempted to deflect blame, attributing price increases to the Iranian government.
The White House declined comment on the latest inflation data. Trump has also claimed credit for economic gains, stating his support for families has been "substantial." However, heightened inflation will pressure the Federal Reserve to raise interest rates, potentially increasing mortgage rates. The 30-year mortgage rate, commonly used for home ownership, is now at 7.40%.
Economists note that despite recent measures to address inflation, the ongoing Middle East war continues to impact the global economy.
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