The US annual inflation rate accelerated to 3.7% in September 2026, up from 3.4% in each of the previous two months and slightly above market expectations of 3.6%, largely reflecting higher energy costs. Gasoline prices surged 34.2% year-on-year, compared with 27.4% in August, while fuel oil prices jumped 74.2%, up from 52% previously. Inflation for shelter also picked up, rising to 3.2% from 3.0%, whereas food inflation eased to 2.5% from 2.7%.
On a monthly basis, the Consumer Price Index (CPI) increased 0.6%, its largest gain in five months, after a 0.4% rise in August and in line with market forecasts. Gasoline prices climbed 9.1% over the month, accounting for more than half of the overall increase in the all-items index. Prices also rose for recreation, used cars and trucks, education, airline fares, medical care, and apparel, while food prices were broadly unchanged and communication costs declined.
Meanwhile, the annual core inflation rate, which excludes food and energy, rose to 2.6% from 2.4%, surpassing expectations of 2.5%. On a monthly basis, core CPI held steady at 0.3%, the same pace as in August, defying forecasts of a slowdown to 0.2%.
