United States consumer prices jumped in September in the final inflation report before the midterm elections, increasing chances of an interest rate hike later this month.
asserted
prices → jump → hike
Annual inflation accelerated to 3.7 percent, up from 3.4 percent in August.
asserted
inflation → accelerate → August
On a monthly basis, prices rose by 0.6 percent, according to the Consumer Price Index report released by the Labor Department’s Bureau of Labor Statistics (BLS) on Wednesday.
uncertain
prices → rise → Wednesday
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Petrol prices led the surge as tensions between the US and Iran, as well as Russia and Ukraine, weighed on global energy prices.
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tensions → recommend → prices
Petrol prices rose 9.1 percent in September, accounting for more than half of the CPI monthly increase, according to the BLS.
uncertain
prices → rise → BLS
“The directionless war in Iran continues to disrupt global supply chains, driving up the prices of food and fuel,” Kyle Moore, chief economist at The Century Foundation, an economic think tank, said in a statement provided to Al Jazeera.
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Moore → continue → Jazeera
Petrol prices have continued to climb.
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prices → continue → ?
The average price for a gallon of petrol is $4.33 ($1.14 per litre), compared with $4.31 a month ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.
uncertain
which → compare → prices
Diesel prices are higher, at $6.29 per gallon (1.66 per litre), compared with $6.23 a month ago.
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prices → compare → 6.23
In a post on X, Patrick DeHaan, head of petroleum analysis for GasBuddy, said, “2026 has now seen more days with average gas prices over $4/gal than any year before: 158 days.”
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2026 → say → days
Shelter costs also jumped 0.4 percent from the previous month, following a 0.3 percent increase in August.
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costs → jump → August
Food costs were a bright spot in the report, remaining unchanged overall.
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costs → remain → report
Food away from home, including restaurant meals, rose 0.2 percent, but that increase was offset by a 0.1 percent decline in food-at-home prices, which track grocery costs.
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which → include → costs
At the grocery store, poultry prices jumped 0.7 percent, fruit and vegetable prices rose 0.5 percent, and juice prices increased 1.1 percent.
asserted
prices → jump → store
However, milk prices dropped 2.1 percent and beef prices fell 0.9 percent.
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prices → drop → ?
Amid heavy investment in AI infrastructure, prices for computer software and accessories have jumped 28 percent from the same time last year.
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prices → jump → time
“The AI boom is playing a huge part, and we have all read about the hundreds of billions being poured into data centers, AI firms, and models,” Rami Cassis, principal of Parabellum Investment, said in comments provided to Al Jazeera.
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Cassis → play → Jazeera
The inflation data comes days before the US Federal Reserve’s interest rate decision later this month.
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data → come → decision
Last month, the US central bank raised rates by 25 basis points, bringing the target range to 3.75–4.00 percent, the first hike in three years.
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bank → raise → years
Economists are divided over whether the Fed will raise rates again or hold them steady.
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Fed → divide → them
According to CME FedWatch, which tracks the likelihood of monetary policy decisions, there is a 52.9 percent chance that rates will remain in the 3.75–4.00 percent range, while a 47.1 percent chance of a quarter of a percentage point hike that would bring them to 4.00–4.25 percent.
uncertain
that → accord → percent
The inflation data puts pressure on Republicans before the midterm elections on November 3.
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data → put → November
A recent Reuters/Ipsos poll showed that about 78 percent of Americans blamed US President Donald Trump’s policies for price increases.
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percent → show → increases
US markets trended downward following the inflation report.
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markets → trend → report
The Nasdaq fell 0.8 percent and the S&P 500 dropped 0.6 percent, while the Dow Jones Industrial Average was roughly flat in midday trading.
asserted
Average → fall → trading
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