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Published: Oct 15, 2026, 2:28 AM
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Prices rose across broad swaths of the U.S. economy in September, as high energy costs triggered by the Iran war pushed up prices in many major consumer categories.
The Bureau of Labor Statistics said Wednesday that overall prices rose 3.7% from a year ago and 0.6% from August. Categories including housing, clothing, and restaurant and takeout food all saw price increases. Only three major categories saw price declines: groceries, medical care commodities and utility gas service.
“The index for gasoline rose 9.1 percent in September, accounting for over half of the monthly all items increase,” the BLS wrote in its report.
The report adds to ongoing concerns that persistent inflation is taking a toll on consumers, particularly as wage growth has been stagnant. As of September, the growth in wages was pacing at 3% on an annual basis. Paychecks have not grown faster than inflation since March.
The overall increase was slightly more than had been expected by economists polled by Dow Jones, who forecast a jump to 3.6%.
Core inflation, which excludes food and energy prices, also rose to 2.6% from a year ago, or 0.3% from August. This was also slightly more than had been expected.
Wednesday’s number is the final inflation report before November’s pivotal midterm elections, in which business owners and consumers have said they will be voting with their bottom line in mind.
“This was a disappointing number,” Kevin Hassett, director of the National Economic Council, said on Fox Business. Still, he maintained that “a lot of Trump policies are helping to keep inflation down.”
Since August, oil prices have risen to more than $106 per barrel from about $80. The price of unleaded gas, which most consumers use, has risen 45% since late February, when the United States and Israel launched the Iran war. The price of diesel, which powers businesses, farms, the shipping industry and other critical sectors, has soared 70% over the same period.