US inflation rises to 3.7% in September, above forecasts
September CPI shows 3.7% rise, driven by petrol prices, surpassing expectations.
Key facts
- CPI increased 3.7% year‑to‑year in September, up from 3.4% in August.
- Energy inflation rose 20.4% over the year, with petrol prices up 9.1% in September.
- Core inflation, excluding food and energy, was 2.6%.
- The US Federal Reserve will closely watch energy costs for broader inflation impact.
- Social Security benefits will rise 3.6% in 2027, effective January.
According to the BBC, the U.S. Bureau of Labor Statistics released September consumer price index data on 14 October 2026, showing a 3.7% year‑to‑year increase, higher than the 3.4% reported for August.
The rise was largely driven by energy prices; petrol prices jumped 9.1% in September, contributing more than half of the overall inflation increase. The report noted that the U.S.-Israel conflict with Iran had disrupted Middle East energy supplies, pushing crude oil prices above $100 a barrel.
According to the US Federal Reserve, it will closely watch energy costs to assess their potential spill‑over into other sectors. Core inflation, which excludes food and energy, stood at 2.6%, while food inflation remained flat in September and 2.5% over the year.
The Social Security Administration announced that benefits will increase 3.6% in 2027, raising the average retirement benefit by $75 a month, effective January for most recipients. This adjustment follows the latest inflation data and is part of the cost‑of‑living adjustment schedule.
Context
The consumer price index tracks price changes for a basket of goods and services, and its year‑to‑year rate indicates overall inflation. Inflation data informs monetary policy decisions, such as interest rate adjustments by the Federal Reserve.
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