Inflation rose slightly in September

Inflation in September rose to 3.7 percent: BLS

Inflation rose slightly in September after holding steady the month prior, new data from the Bureau of Labor Statistics (BLS) showed Wednesday.

The consumer price index (CPI) increased 0.6 percent last month and was up 3.7 percent relative to September 2025. That marked an increase from August, when annual inflation sat at 3.4 percent.

The popular inflation metric was expected to rise by 0.5 percent in September and increase slightly to 3.6 percent year over year, the Federal Reserve Bank of Cleveland’s “Nowcast” projected on Tuesday.

Gas prices, which rose 9.1 percent in September, accounted for more than half of the monthly increase in inflation, according to the BLS.

Energy prices overall ticked up by 5.2 percent last month after rising by 2.1 percent in August. Food prices, meanwhile, held steady in September and were up 2.5 percent from 12 months prior.

Fuel costs have remained elevated amid the Iran war, with President Trump’s efforts to lower diesel and gas prices not bearing fruit so far.

A gallon of regular gas costs roughly $4.33 as of Wednesday morning, up from $2.98 two days before the U.S. and Israel launched the war, according to data from AAA. Diesel also costs about $6.30 per gallon, an increase of roughly $2.64 relative to a year ago, AAA reported.

Trump has not indicated he will end the war soon, saying Wednesday he has “had it” with Iran’s leaders.

“We’re going to do a number [on Iran],” the president said during a campaign rally in Alaska.

Core annual inflation, which does not include more volatile food or energy prices, was 2.6 percent — higher than the Cleveland Fed’s projection of 2.4 percent, which is where it stood in August.

Heather Long , chief economist at Navy Federal Credit Union, noted the spike in inflation “was largely driven by rising gas and diesel prices” along with higher airfares and prices for used cars.

“The big problem = Inflation rose 3.7% in the past year, wiping out 3% average wage gains ,” she wrote Wednesday on the social platform X.

Welcome to The Hill’s Business & Economy newsletter , I’m Max Rego — covering the intersection of Wall Street and Pennsylvania Avenue.

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