US inflation rises to 3.7% as fuel costs climb ahead of midterms

US inflation accelerated last month as petrol, clothing and airfares became more expensive, adding pressure on households just a few weeks before the midterm elections.

The consumer price index rose 3.7% in September compared with a year earlier, the US Department of Labor said on Wednesday, up from 3.4% in August. On a monthly basis, prices jumped 0.6%, up from 0.4% the previous month.

The annual figure was above the 3.6% forecast by economists surveyed by data provider FactSet.

The figures underscore the lingering impact of the Iran war on petrol prices and the persistence of inflation, which fell sharply from a 9.1% peak in 2022 but has risen since the war began in late February.

Excluding the volatile food and energy categories, core prices rose 2.6% from a year earlier, up from 2.4% in August. Monthly core inflation held at 0.3%.

“CPI came in at 3.7%, slightly above expectations, and similarly core inflation was above predictions, suggesting that prices are feeding into the wider economy,” said Richard Carter, head of fixed interest research at Quilter Cheviot.

Elevated inflation has posed political problems for Republicans in Congress and complicated the Federal Reserve’s efforts to bring price rises under control.

A poll by The Associated Press-NORC Center for Public Affairs Research found that just 17% of US adults approve of President Donald Trump’s handling of the cost of living. Only 26% approve of his handling of the economy overall, a new low.