US price increases reached an annual rate of 3.7% in September, according to the latest data from the Bureau of Labor Statistics. This marks the highest inflation rate since the spring, specifically since May when the annual rate was 4.2%.
Consumer prices increased by 0.6% from August to September. Core inflation, which excludes volatile energy and food prices, also saw a slight increase during September.
Overall price increases have largely been attributed to the US-Israel war with Iran, which has led to soaring energy prices. Average gas prices are reportedly over a dollar per gallon higher than last year, and diesel prices reached a record high last month.
Brown University data suggests higher energy prices from the Iran war have cost Americans over $1,020 per household, totalling $133bn for all US consumers. The Federal Reserve raised interest rates last month for the first time since 2023, citing elevated inflation, which affects borrowing costs including mortgage rates. The 30-year mortgage rate is currently up to 7.40%.