Consumer Prices Rose 3.7% Over the Past Year as Gasoline Jumped 9.1% in September

Consumer prices rose 3.7% over the past year and 0.6% in September alone, according to the latest inflation report, with gasoline prices jumping 9.1% in a single month and adding pressure on Republicans two weeks before the midterm elections.

Gasoline was a major driver of the monthly increase. Diesel fuel, which powers trucks, farm equipment and freight trains, is also surging, raising the cost of moving groceries, packages and building materials, costs that have trickled down to what Americans pay for those goods. The report showed consumer prices last month were 3.7% higher than a year earlier, a number that undercuts President Donald Trump’s upbeat descriptions of an improving economy, according to Fox News.

Energy costs are being pushed up by the war with Iran, which has disrupted shipping through the Strait of Hormuz, while damage to Russian energy infrastructure has added pressure of its own, according to the Fox News report. Diesel prices in the United States are near record highs.

Utility bills are adding to the squeeze as colder weather approaches. Electricity prices were up 4.4% from a year earlier in September, while piped natural gas service rose 5%, the report showed. Housing costs also continued to climb: the shelter index, which tracks rents and an estimate of what homeowners would pay to rent their own homes, rose 3.2% over the past year. Grocery prices offered some relief, dipping 0.1% in September, though they remained 1.8% higher than a year earlier.

Tariffs and housing add to the strain

Trade policy is part of the affordability debate. A New York Federal Reserve study found that tariffs in place through February added 2.9 percentage points to consumer-goods inflation. Tariffs are taxes on imported goods, and American companies that pay them can pass some of the added cost along to shoppers. The study found higher prices also reached some goods made in the United States, as domestic producers faced less competition from imports. The White House has argued its trade policies will strengthen American manufacturing and that foreign exporters bear the costs.

Housing is a different affordability challenge. The median price of an existing home reached $417,500 in September, up 1.3% from a year earlier, while the average 30-year mortgage rate was 7.4%.

Trump returned to the White House promising to lower costs and is now campaigning for Republican candidates in closely watched races. With Election Day approaching, the latest figures give voters a snapshot of what they are paying, but not a verdict on who is to blame, Fox News reported.

Reporting based on coverage by Fox News.