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US Inflation Surges to 3.7% in September
Confirmed
In Short: According to federal government data released on Wednesday, US inflation surged to a 3.7% annual rate in September, up from 3.4% in August, exceeding economists' expectations.
According to federal government data released on Wednesday, US inflation surged to a 3.7% annual rate in September, up from 3.4% in August, exceeding economists' expectations. ABC News and BigGo Finance reported this increase, with both outlets noting that the rise was driven largely by higher gasoline prices.
ABC News and BigGo Finance also highlighted that gas prices jumped more than 9% in September from August, accounting for more than half of the overall price increase. This significant rise in fuel costs has been attributed to ongoing tensions in the Middle East, particularly the Iran war, which has disrupted oil supplies and increased shipping costs.
The Bureau of Labor Statistics reported that food prices remained stable in September, with annual inflation for food at 2.5%. However, energy prices rose sharply, with the annual rate reaching 20.4% in September, according to BigGo Finance.
Despite the overall increase in inflation, some categories saw less dramatic changes. Shelter prices, which include home-owner payments and rental charges, also rose in September, contributing to the overall inflation rate.
Nick Timiraos, a financial journalist known as the 'Fed whisperer,' calculated that September's unrounded core inflation rose 0.33% month-over-month, roughly 0.1 percentage point above most economists' expectations. This indicates that core inflation, which excludes volatile food and energy prices, is also on the rise.
The inflation report comes at a critical time, with the Federal Reserve set to meet on October 27–28 to decide on interest rates. The report suggests that the Fed's September rate hike was not a one-off move, as inflation remains stubbornly high.
In addition to the US, other countries are also experiencing inflationary pressures. Türkiye Today reported that French inflation reached 3% in September, the highest level since February 2024, driven by surging energy prices linked to the blockage of the Strait of Hormuz.
Aninews in India noted that oil prices have climbed sharply, adding to concerns about higher energy and transportation costs. This trend is likely to keep inflation elevated in the near term.
Kyivindependent in Ukraine reported that the central bank decided against further rate cuts due to heightened inflation risks, as Russia grapples with fuel shortages and price surges caused by Ukrainian drone strikes.
The University of Michigan survey shows that US consumer confidence has fallen to historic lows, with both short- and long-term inflation expectations rising across the board.
While the reports from ABC News and BigGo Finance differ slightly in their specific figures, they agree that US inflation has surged to a 3.7% annual rate in September, driven primarily by higher gasoline prices and energy costs.
What this adds
The surge in inflation has led to increased volatility in financial markets, with bond yields and stock prices reacting to the data.
What's confirmed
- According to federal government data released on Wednesday, US inflation surged to a 3.7% annual rate in September, up from 3.4% in August, exceeding economists' expectations. ABC News and BigGo Finance reported this increase, with both outlets noting that the rise was driven largely by higher gasoline prices.
- ABC News and BigGo Finance also highlighted that gas prices jumped more than 9% in September from August, accounting for more than half of the overall price increase. This significant rise in fuel costs has been attributed to ongoing tensions in the Middle East, particularly the Iran war, which has disrupted oil supplies and increased shipping costs.
- The Bureau of Labor Statistics reported that food prices remained stable in September, with annual inflation for food at 2.5%. However, energy prices rose sharply, with the annual rate reaching 20.4% in September, according to BigGo Finance.
- Despite the overall increase in inflation, some categories saw less dramatic changes. Shelter prices, which include home-owner payments and rental charges, also rose in September, contributing to the overall inflation rate.
- Nick Timiraos, a financial journalist known as the 'Fed whisperer,' calculated that September's unrounded core inflation rose 0.33% month-over-month, roughly 0.1 percentage point above most economists' expectations. This indicates that core inflation, which excludes volatile food and energy prices, is also on the rise.
- The inflation report comes at a critical time, with the Federal Reserve set to meet on October 27–28 to decide on interest rates. The report suggests that the Fed's September rate hike was not a one-off move, as inflation remains stubbornly high.
- In addition to the US, other countries are also experiencing inflationary pressures. Türkiye Today reported that French inflation reached 3% in September, the highest level since February 2024, driven by surging energy prices linked to the blockage of the Strait of Hormuz.
- Aninews in India noted that oil prices have climbed sharply, adding to concerns about higher energy and transportation costs. This trend is likely to keep inflation elevated in the near term.
- Kyivindependent in Ukraine reported that the central bank decided against further rate cuts due to heightened inflation risks, as Russia grapples with fuel shortages and price surges caused by Ukrainian drone strikes.
- The University of Michigan survey shows that US consumer confidence has fallen to historic lows, with both short- and long-term inflation expectations rising across the board.
- While the reports from ABC News and BigGo Finance differ slightly in their specific figures, they agree that US inflation has surged to a 3.7% annual rate in September, driven primarily by higher gasoline prices and energy costs.
What's still developing
- The Middle East conflict drove up fuel prices and catapulted inflation to a three-year high in May, but inflation eased slightly over the summer after a preliminary peace agreement established an on-again, off-again pause in fighting.
- "The plain fact is that inflation is too high and has been for too long," Fed Chair Kevin Warsh said at a press conference in Washington, D.C., last month.
- The inflation report came days after monthly jobs data showed sluggish hiring in September.
- This report is the final CPI reading before the Federal Reserve's October 27–28 rate decision meeting, and also the last inflation report ahead of the November 3 congressional midterm elections.
- MABANGLO American households got no relief from rising prices in September.
- The comprehensive rehabilitation, undertaken at a cost of around Rs 7 crore, began on July 13 and was completed on September 15.
- Wednesday, September 30, 2026 · 11:14 PM ET In Short: The surge in bond yields and the strong U.S.
- The Crypto King has maintained a robust bullish outlook since September 16 and is currently targeting a short-term breakout to the resistance range between $88,000 and $90,000.
- In China, exports strengthened and inflation firmed, while the government announced a major recapitalization of eight banks and insurers.
- The yield on the benchmark U.S. 10-year Treasury note dropped today after Federal Reserve Governor Christopher Waller said he felt that, given the easing evident in the most recent two monthly readings on inflation, there may be no need for the central bank to raise rates this month, as financial markets had been expecting.
- Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on Sept. 16, 2026. (PHOTO: REUTERS/Jeenah Moon) NEW YORK―US shares dropped while benchmark 10-year Treasury yields hit the highest level since 2007 on Wednesday after data showed that U.S. business activity raced to a more than five-year high in September, fueled by a surge in new orders.
- With Eurozone inflation already above the ECB’s 2% target and energy prices rising sharply, markets are watching closely for signs that the shock is starting to spread beyond energy into services, wages and other underlying prices.
Sources
- ABC News - Breaking News, Latest News and Videoslink
- BigGo Financelink
- ConsumerAffairslink
- Energynewslink
- FXStreetlink
- Investinglivelink
- La Voce di New Yorklink
- Quartzlink
- The Statesmanlink
- Türkiye Todaylink
- finchannellink
- Warpbeatlink
- Fxstreetlink
- Aninewslink
- Goldlink
- Staradvertiserlink
- CNBC Television — video link