# September Inflation Runs Hotter Than Expected at 3.7% as Gasoline Jumps 9.1% in a Month

The Bureau of Labor Statistics says consumer prices rose 0.6% in September, and markets now see a better chance of a Fed rate hike later this month.

- Section: [Economy](https://rightnewsrightnow.com/economy/)
- Published: 2026-10-18
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/september-cpi-inflation-hotter-than-expected/

Prices climbed faster than forecasters expected in September, and gasoline did most of the damage.

The Bureau of Labor Statistics reported Wednesday that the consumer price index rose 0.6% for the month and 3.7% from a year earlier. The monthly figure matched what economists polled by LSEG predicted, but the annual number beat their 3.6% estimate. For comparison, the annual rate was 3.4% in August and the monthly rate was 0.4%.

Energy drove it. Fox Business reports energy prices rose 5.2% in the month and are up 20.4% from last year. Gasoline jumped 9.1% in September and is up 34.2% over 12 months, and the BLS said gasoline alone accounted for more than half of the monthly rise in the headline index. Electricity rose 0.2% for the month and is up 4.4% on the year. Fox ties the elevated energy prices to the Iran war and disruptions to oil and gasoline supply.

Core prices, which leave out food and energy, rose 0.3% for the month and 2.6% from a year ago. Both were slightly hotter than the 0.2% and 2.5% economists expected.

Some of the report was better news at the grocery store. Food prices were unchanged for the month and are up 2.5% year over year. Food at home fell 0.1% and is up 1.8% from a year ago. Egg prices fell 1.3% for the month and are down 20.6% from last year. Beef fell 1% for the month. Coffee rose 0.9% and is up 7.1% from last year, and airline fares are up 22.4% from a year ago. Housing prices rose 0.4% for the month and 3.2% on the year.

What happens next is a Federal Reserve question. The Fed meets Oct. 27 and 28. Fox cites the CME FedWatch tool, which showed the chance of the Fed holding its benchmark rate at 3.75% to 4% falling from 77.9% to 58.5% after the report, with the odds of a quarter-point hike rising from 22.1% to 41.5%. The S&P 500 was down 0.95% in morning trading Wednesday.

Vanguard senior economist Adam Schickling said the report shows inflation "is proving more persistent than many expected, particularly across services," and that "patience will be required." Goldman Sachs Asset Management's Tim Urbanowicz said $100-plus crude is adding friction to sticky core prices and complicates the disinflation story.

For households, the point is plain. Pump prices are the number most voters see every day, and this report says they are still climbing.

## Source

Original reporting: [Fox Business](https://www.foxbusiness.com/economy/cpi-inflation-september-2026)