US inflation accelerated to 3.7% in September — The Hill

In the United States, the consumer price index rose by 0.6% month-on-month in September, while annual inflation accelerated to 3.7%, compared with 3.4% in August. The US Bureau of Labor Statistics released the data, The Hill reports.

Gasoline prices became the main factor

Gasoline prices rose by 9.1% in September and accounted for more than half of the overall monthly increase in the consumer price index, the Bureau of Labor Statistics said. Overall energy costs increased by 5.2% after rising by 2.1% in August.

According to the American Automobile Association, as of the morning of October 14, a gallon of regular gasoline in the United States cost about $4.33. This was higher than the $2.98 recorded two days before the start of the US and Israeli war with Iran. The price of diesel fuel was about $6.30 per gallon, approximately $2.41 higher than a year earlier.

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Expectations regarding the Fed rate

The September data were released two weeks before the next Federal Open Market Committee decision on interest rates. At its previous meeting, the committee raised the rate by a quarter of a percentage point in an effort to bring inflation closer to the 2% target.

Sixteen of 18 FOMC officials expected at least one more rate increase this year in their quarterly projections. At the same time, according to CME FedWatch, traders estimated the probability of keeping the rate in the 3.75–4% range at the end of October at 78.4%.

Cleveland Federal Reserve Bank President Beth Hammack said persistent inflation could require tighter policy. She linked price pressures to energy shocks, President Trump's tariffs, and the expansion of the artificial intelligence sector.