U.S. inflation accelerates to 3.7% as gasoline costs surge

U.S. consumer prices rose 0.6% in September and 3.7% annually, driven by a sharp surge in gasoline costs, according to Reuters. This acceleration poses a political challenge for President Donald Trump ahead of November's midterm elections. The Labor Department reported the CPI increase, which matched economist forecasts for the monthly figure but exceeded the 3.6% annual prediction. Gasoline prices jumped 7.1% in September, according to the Energy Information Administration. October polls showed worsening consumer sentiment and declining approval ratings for Trump. The core CPI, excluding food and energy, rose 0.3% monthly and 2.6% annually, up from 2.4%. The Federal Reserve raised its key interest rate by 25 basis points to 3.75–4.00% in September, the first hike in three years, signaling potential further increases.