September Inflation Report Shows Prices Rose 3.6% as Gas Costs Hit Voters

The U.S. inflation report for September, due Wednesday, is expected to show prices rose 3.6% year-over-year, up from 3.4% in August, as high gasoline and essential costs weigh on voters ahead of the November midterm elections. Inflation remains well above the Fed's 2% target, driven by the Iran war's impact on fuel prices, which peaked in May and eased over the summer before the peace accord expired in August. The national average gas price is above $4.30 a gallon, and diesel has risen 66% since the conflict began. The report follows weak September jobs data showing only 29,000 new positions, while consumer sentiment neared record lows. The Fed raised rates last month for the first time since 2023, with another possible hike considered at its Oct. 28 meeting.