US inflation climbs to 3.6% as oil prices weigh on Trump days before midterms
US consumer prices rose in September at the fastest pace in months, driven by oil and gasoline since the Iran war – five days before the congressional elections.
Symbolic image · Photo: Rick Obst / Wikimedia Commons, CC BY 4.0 (cropped and resized)
Inflation in the United States accelerated in September. The personal consumption expenditures (PCE) price index released by the Commerce Department, a gauge closely watched by the Federal Reserve, was 3.6% higher than a year earlier, up from 3.4% in August. Prices rose 0.5% from the previous month alone, the biggest increase since May. Core inflation, which excludes energy and food, rose to 3.1%.
Energy prices are the main driver, according to The Associated Press: US crude costs more than $100 a barrel, compared with under $70 before the Iran war. A gallon of gasoline averages about $4.25 nationwide. Consumer spending rose 0.5%, but was flat after adjusting for inflation.
The figures come less than a week before the Nov. 3 midterm elections, in which the cost of living is a central issue. Polls show most voters are dissatisfied with President Trump's handling of rising prices. The Fed held its benchmark rate in a range of 3.75% to 4.00% on Wednesday.