US inflation hits 3.7%, topping forecasts on fuel costs
Annual inflation rose to 3.7%, driven by a 34.2% spike in petrol prices.
US inflation in the year to September climbed to 3.7%, a larger jump than economists predicted. The main culprit was gasoline, which spiked 34.2% over the year after Middle East energy supplies tightened due to the US-Israel conflict with Iran.
In September alone, fuel prices jumped 9.1%, accounting for more than half the monthly inflation increase. Overall energy costs rose 20.4%, with home heating fuel up 74.2%.
Food inflation stayed subdued at 2.5% for the year. The Federal Reserve is watching closely to see if energy costs begin pushing up prices across other areas, which could drive inflation higher.
The elections next month are being fought largely over cost-of-living pressures.
- 3.7%
- Annual inflation rate
- 34.2% per year
- Petrol price increase
- 9.1%
- September fuel jump
- Now over $100 per barrel
- Crude oil price
Why it mattersUS inflation affects global markets, currency values, and central bank interest-rate decisions worldwide, including Australia's.
AustraliaHigher US inflation may push up Australian import costs for consumer goods and could influence the Reserve Bank's interest-rate strategy as it watches global price pressures.
✓ Claims checked against the source. checked 3 h ago
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