Consumer prices rose 3.6% in September

WASHINGTON — An inflation gauge closely monitored by the Federal Reserve accelerated last month, showing that prices remain elevated less than a week from midterm elections in which affordability concerns have become a central issue. Consumer prices rose 3.6% in September compared with a year earlier, the Commerce Department said Oct. 29, up from 3.4% in August. On a monthly basis, prices climbed 0.5%, up from 0.3% in August and the highest figure since May. Annual inflation has worsened since the Iran war caused spikes in oil and gas prices. U.S. oil prices still top $100 a barrel, up from less than $70 before the war. Polls show that the rise in inflation has soured most voters on the economy and President Donald Trump's handling of rising costs. JUST IN: The US still has an inflation problem and it's getting worse again. PCE Inflation rose to 3.6% in September. That's the highest since May. Core PCE Inflation (excludes food and energy) ticked up to 3.1%. That's also the highest since May. Bottom line: Inflation is back near a 3-year high. It's largely due to war in Iran, but there's legitimate concern that inflation is spreading beyond energy. — Heather Long (@byHeatherLong) October 29, 2026 Trump campaigned in 2024 on reducing prices, including bringing the cost of gas below $2 a gallon. It currently averages about $4.25 a gallon nationwide. Excluding the volatile energy and food categories, inflation also picked up. It increased 3.1% from a year ago in September, up from 3% in August. And from August to September, core prices rose 0.3%, the same as the previous month.

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