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Wed, 14 Oct 2026

Wed, 14 Oct 2026 US inflation rises more than expected - here's what is happening with prices

The pace of price rises increased to 3.7% in the year to September, driving by higher motor fuel costs.

* US inflation rose by more than expected to 3.7% in the year to September.
* The pace of price rises increased from 3.4% in August, driven by higher petrol prices due to disruption in Middle East energy supplies.
* Petrol prices jumped by 34.2% over 12 months and 9.1% in September alone, accounting for more than half of the increase in inflation.
* Energy inflation was up by 20.4% over the year, with fuel oil prices rising by 74.2%.
* Food inflation remained subdued, with a flat reading in September and 2.5% across the year.
* Core inflation, which strips out food and energy prices, was 2.6%.
* The Social Security Administration announced that benefits will rise by 3.6% in 2027, resulting in an average retirement benefit increase of $75 per month.
* Higher tariffs introduced by President Trump have had a negative impact on inflation, with US businesses absorbing nearly 90% of the added tax cost.
* Inflation has been above the Federal Reserve's target rate of 2% for several months, but remains lower than its peak of around 9% during the Covid pandemic.