Inflation in the US accelerated amid fuel price increase
In the US in September 2026, annual inflation accelerated to 3.7% compared to 3.4% in August. The main reason for the rise in consumer prices was the increase in gasoline prices amid the war with Iran and instability in global energy markets.
This is evidenced by data from the US Bureau of Labor Statistics (BLS), published on October 14, reports Financial Times.
For the month, the consumer price index (CPI) increased by 0.6% after a 0.4% increase in August. This was higher than economists' expectations, who forecast annual inflation at 3.6%.
The main factor in the acceleration of inflation was fuel prices. In September, gasoline rose by 9.1%, accounting for more than half of the total monthly increase in consumer prices. Over the year, its cost increased by 34.2%.
Energy goods and services overall rose by 5.2% for the month, and by 20.4% year-on-year. Particularly notable was the increase in prices for heating oil: by 15.3% in September and by 74.2% over the past 12 months.
At the same time, inflationary pressure spread to other categories of goods and services. Core inflation, which excludes the most volatile food and energy prices, accelerated from 2.4% to 2.6% year-on-year.
In September, the core index rose by 0.3%. Among the categories that became more expensive were airfares, used cars, medical services, clothing, and education.
Housing costs, including rent, increased by 0.4% for the month and by 3.2% for the year. Food overall did not rise in September: prices for groceries fell by 0.1%, while dining out became 0.2% more expensive.
According to Financial Times, the acceleration of inflation is primarily associated with the consequences of the war with Iran, which disrupted usual energy supplies and led to higher world oil prices.
New data reinforced expectations of further interest rate hikes by the US Federal Reserve. After the statistics release, the probability of a rate hike at the October meeting, according to market estimates, increased to about 45% from 22% before the report release.
Financial markets reacted with higher yields on US government bonds and a stronger dollar. The yield on ten-year Treasury bonds rose to about 5.3%, while futures on major US stock indices declined.
Rising government bond yields increase borrowing costs for companies and households. This also puts additional pressure on the real estate market, as mortgage rates remain high.
The acceleration of inflation complicates the task of the Federal Reserve, which seeks to return price growth to the 2% target. The next meeting of the US central bank is scheduled for October 27–28. Before then, investors will assess the likelihood of another monetary tightening.
Based on materials from: US Bureau of Labor Statistics, Financial Times, US Federal Reserve.