Inflation heats up as gas prices surge

Axios · 10/14/2026, 1:00:05 PM

Data: Bureau of Labor Statistics ; Chart: Courtenay Brown/Axios U.S. inflation picked up in September as soaring energy prices added to already stubborn price pressures, the Labor Department said on Wednesday. Why it matters: The latest Consumer Price Index shows that the inflation fight is far from over — and makes further Federal Reserve interest rate hikes more likely as Americans struggle with higher costs. By the numbers: CPI rose 0.6% in September from the prior month, with the annual inflation rate at 3.7%, the government said. That compares with a 0.4% monthly increase and a 3.4% annual rate in August. Core prices, which exclude volatile food and energy costs, gained 0.3% on the month, compared with a similar monthly gain in August. In the 12 months through September, core CPI rose 2.6%, up from 2.4% the prior month. Zoom in: The latest figures capture the toll of the Middle East war on American consumers as disruptions to global energy supplies push up fuel prices. Gasoline prices spiked 9.1% in September after climbing 3.9% in August, when they accounted for more than a third of the monthly increase in consumer prices. Prices for shelter, one of the largest components of the index, increased 0.4%, compared with a 0.3% gain in August. Food prices were flat, compared with a slight 0.1% increase the previous month. Zoom out: The surge in fuel prices has prompted extraordinary measures from the Trump administration, particularly as soaring diesel costs threaten to push up prices for goods transported across the country . President Trump temporarily eased restrictions on tax-exempt diesel and lifted some U.S. sanctions on Russian fuel to boost global diesel supplies. Airline fares surged 1.2% in September — bringing the annual increase to 22% — as higher jet fuel costs put pressure on ticket prices. What to watch: The Social Security Administration is set to announce the 2027 cost-of-living adjustment for millions of retirees, based on inflation figures release