U.S. Inflation Rose in September as Gas Prices Jumped

U.S. consumer prices rose 3.7% over the year through September, while the monthly increase topped half a percentage point. It was the biggest one-month gain in five months. Gasoline prices rose 9.1% from August and supplied more than half of that monthly increase, making fuel a larger share of spending for Spokane residents who drive to work, school, errands and other daily activities.

The increase reached beyond gasoline. Airfares, home-heating oil, apparel, software and car repairs also became more expensive. Heather Long, vice president and chief economist at Navy Federal Credit Union, said core inflation—which leaves out food and energy—also moved higher. Her assessment was that the broader rise would make inflation harder to bring down than expected.

The pressure is especially difficult when wages are not keeping pace: inflation reached 3.7%, compared with 3% wage growth. Long said people with the least income are relying more on credit cards and missing payments, while some households are cutting grocery spending to cover other bills. Mortgage rates were already above 7.5%, and Long said the Federal Reserve would need to raise interest rates again. Social Security's January cost-of-living adjustment is expected to be about 3.6%, or roughly $75 per month on average, the largest increase in three years.