Key facts
- U.S. gasoline prices rose 7.1% last month.
- The average national gasoline price was $4.3413 per gallon.
- Diesel prices are above $6 per gallon.
- Economists expect September CPI to rise 0.6% month-on-month.
- Annual inflation to September was 3.6%.
- Core inflation to September was 2.4%.
Rising energy costs are poised to push U.S. consumer inflation higher, with economists forecasting a 0.6% monthly increase in the Consumer Price Index (CPI) for September, according to a Reuters poll. The official data is expected later today. Gasoline prices saw a significant jump of 7.1% last month, with the national average reaching $4.3413 per gallon, a slight decrease from the previous month's average. Diesel prices, however, remain elevated above $6 per gallon, though off their record highs.
Sung Won Sohn, a professor of finance and economics at Loyola Marymount University, told Reuters that consumers are particularly sensitive to fluctuations in food and energy prices. He noted that many Americans are struggling with higher costs, especially those at the lower end of the economic spectrum, and suggested this could impact election results. The K-shaped economy concept, which describes divergent economic performance across different segments of the population, is relevant to understanding these impacts. The annual inflation rate for the 12 months to September stood at 3.6%, considerably above the Federal Reserve's 2% target. Core inflation, which excludes volatile food and energy prices, was 2.4% for the same period.