Key facts
- Consumer prices rose 0.6% in September, exceeding forecasts.
- Annual inflation accelerated to 3.7% from 3.4% in August.
- Core inflation rose 0.3% monthly and 2.6% annually.
- Voters cite inflation as their top election issue.
- Consumer sentiment regarding economic conditions slipped to a record low.
The final inflation report before the 2026 midterm elections showed a faster-than-expected rise in consumer prices, posing a political challenge for President Donald Trump and the Republican party. The Consumer Price Index (CPI) increased by 0.6 percent in September, bringing the annual inflation rate to 3.7 percent, exceeding analyst forecasts. Core inflation, which excludes food and energy, also saw a slight increase. The White House has attributed rising prices to the previous administration and anticipates a quick fall in fuel costs as the conflict in Iran concludes. Polls indicate that voter concerns about affordability and inflation are high, significantly influencing the upcoming elections.