WASHINGTON — U.S. consumer prices rose 3.7% in the year through September, up from 3.4% in August, as gasoline, clothing and air fares got more expensive weeks before the Nov. 3 midterm elections, the Associated Press and BBC News reported Wednesday.
The Labor Department said the consumer price index jumped 0.6% from August to September, after a 0.4% rise the prior month. The annual reading was hotter than economists had expected. The Associated Press said higher gas, clothes and air fares drove the acceleration.
The BBC said gasoline prices have spiked after Middle East energy supplies were disrupted by the U.S.-Israel conflict with Iran, with crude moving from just over $70 a barrel before the war to more than $100. Cost-of-living pressures are a central campaign issue for both parties.
The Federal Reserve targets 2% inflation and last month raised its benchmark rate by a quarter point to a 3.75%–4.00% range, its first hike in three years. Markets still see only a modest chance of another increase at the Oct. 27–28 meeting, but Wednesday’s print keeps affordability at the centre of the midterm fight.
Sources: The Associated Press, BBC News
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