Inflation Worsened Last Month To 3.7% In Sign That Prices Remain High As Midterms Near
LOADINGERROR LOADINGWASHINGTON (AP) — U.S.inflation accelerated last month as gas, clothes, and air fares got more expensive, evidence that rising prices remain an economic challenge just a few weeks before the midterm elections that have focused heavily on issues related to affordability.The consumer price index rose 3.7% in September compared with a year ago, the Labor Department said Wednesday, up from 3.4% in August.
On a monthly basis, costs jumped 0.6% from August to September, the biggest gain in five months, up from a 0.4% increase the previous month.Advertisement The figures underscore the lingering impact of the Iran war on gas prices and the stubborn persistence of inflation, which fell sharply from a 9.1% peak in 2022 but this year has ticked higher since the war began in late February.The rise isn’t all linked to gas prices, as surging investment in data centers and AI has also pushed up prices for computer chips and the consumer electronics that also use them.
Elevated inflation has posed political problems for Republicans in Congress and is a challenge for the Federal Reserve, which is required by Congress to seek stable prices.Excluding the volatile food and energy categories, core prices rose 2.6% in September from a year ago, up from 2.4% the previous month.And they climbed 0.3% from August to September, an elevated pace that, if it continued for a year, would run well above the Fed’s 2% target.Ongoing inflation has taken a toll on Trump’s standing with U.S.
voters.A poll by The Associated Press-NORC Center for Public Affairs Research found that just 17% of U.S.
adults approve of his handling of the cost of living issue.And only 26% approve of his handling of the economy overall, a new low.Advertisement Federal Reserve officials are watching inflation data closely to determine whether they need to raise their short-term interest rate further, and by how much.Fed Chairman Kevin Warsh said last month that inflation ...