US Inflation Rises to 3.7% in September as Gasoline Prices Surge

The US inflation rate rises to 3.7% in September, driven by gasoline prices, according to a statement released by the Bureau of Labor Statistics (BLS) on Wednesday, October 14. This is the highest annual rate since May 2026 and is up from 3.4% for the 12 months ending in August. On a monthly basis, the Consumer Price Index increased 0.6%, following a 0.4% rise in August, according to the BLS report on US inflation.

• Why it matters: Gasoline prices rose 9.1% in September and accounted for more than half of the monthly increase in the overall index. Over 12 months, they have risen 34.2%. Because fuel is a frequent expense for many households, the increase can quickly affect family budgets.

What’s Up and What’s Down

• Energy: increased 5.2% for the month, after rising 2.1% in August, and 20.4% over 12 months.
• Heating: fuel oil is up 74.2% over 12 months.
• Household services: electricity is up 4.4% and natural gas is up 5.0% over 12 months.
• Housing: increased 0.4% for the month and 3.2% over 12 months.
• Cars and clothing: used cars are down 1.5% over 12 months, while new cars are up 0.6% and clothing is up 3.4%.

Core US inflation, which excludes food and energy, rose 0.3% in September, the same as in August. Over 12 months, it reached 2.6%, compared with 2.4% in August.

The Supermarket

Food prices were unchanged in September (0.0%). Grocery prices fell 0.1% for the month, while restaurant prices increased 0.2%. Within grocery stores, beef prices fell 1.0% and milk prices dropped 2.0%.

Over 12 months, food prices are up 2.5%, with grocery prices up 1.8% and restaurant prices up 3.5%. Fruits and vegetables are up 3.7%, and non-alcoholic beverages are up 3.8%, while dairy products are down 0.7%.

What’s Next for US Inflation

According to the Energy Information Administration (EIA), the national average price of a gallon of regular gasoline was $4.331 on October 12. That is 2.3 cents less than the previous week and $1.270 more than a year earlier.

Meanwhile, the Federal Reserve’s calendar shows that its next monetary policy meeting is scheduled for October 27 and 28, 2026.

What You Can Do When US Inflation Rises

• Compare gas prices: before filling up, check prices at several nearby stations or use a price comparison app. The difference can add up over time.
• Review your subscriptions: cancel any you no longer use, such as streaming services, apps, or memberships, to free up money each month.
• Pay off the most expensive cards first: if you have debt, direct any extra money toward the card with the highest interest rate while making the minimum payments on the others.