Republicans are entering the midterm elections with the highest rate of inflation since the spring, according to a government report released on Wednesday. US price increases reached an annual rate of 3.7% in September, according to the latest data from the Bureau of Labor Statistics, up from 3.4% in August. This final inflation report before the pivotal midterm elections comes amid polls showing widespread dissatisfaction with the Trump administration over the cost of living.
Price increases are the highest they have been since the annual inflation rate reached a three-year peak of 4.2% in May. Gasoline accounted for over half of overall price increases, up 34% from last year. Fuel oil, which is used to heat homes, increased by 74% from last year, a worrying sign for households heading into the winter.
Air travel, which many Americans rely on during the holidays, also increased by 22.4%. Overall, consumer prices went up 0.6% from August. Core inflation, which strips out volatile energy and food prices, also ticked up by 0.3% in September to 2.6% annually.
Price increases this year have largely driven by the US-Israel war with Iran, which has caused energy prices to soar. Average gas prices remain over a dollar per gallon more than last year, according to data from AAA. Meanwhile diesel, which powers domestic supply chains, reached a record-high last month.
September’s inflation rate is the highest it has been before a midterm election, with the exception of the pandemic, since 1990. The economy has consistently been cited as a top issue for American voters, as rising gasoline prices and persistent inflation have eaten into household budgets. Higher energy prices from the Iran war have cost Americans over $1,020 per household, according to Brown University, and a total of $133bn for all US consumers.
Much of the anger is expected to be directed at Republicans, who control Congress and the White House. According to a recent survey from /Ipsos, 78% of Americans blame the current Trump administration’s policies for inflation that is outpacing their earnings, including 57% of Republicans who support Donald Trump. In recent weeks, Trump has attempted to downplay his administration’s role in price increases, pointing to the Iranian government as the cause of the squeeze.
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