US inflation rises more than expected ahead of midterm elections

What the report says

US consumer inflation accelerated in September, rising 3.7% from a year earlier, according to official figures reported by BBC World News. That was above expectations and up from 3.4% in August, making it the last major inflation reading before next month’s US midterm elections.

BBC said the increase was mainly driven by higher gasoline prices, which have risen sharply amid disruption to Middle East energy supplies linked to the US-Israel conflict with Iran. The report also noted a broad rise in energy costs, while food inflation remained comparatively subdued. The Bureau of Labor Statistics, which measures inflation through the consumer price index, said core inflation excluding food and energy was 2.6%.

The issue carries political weight because the elections are being fought in part over cost-of-living pressures. Beyond the immediate fuel shock, BBC’s report pointed to the effect of President Donald Trump’s tariff policy on prices, citing research from the Federal Reserve Bank of New York. That research suggested US businesses absorbed most of the added tariff costs, with some spillover into consumer prices.

More broadly, the article places the latest reading in context: inflation is still far below its pandemic-era peak, but remains above the Federal Reserve’s 2% target, leaving policymakers alert to whether higher energy costs could feed into other parts of the economy.