US inflation hits 3.7% as gasoline prices surge before midterms

US inflation rose to 3.7% in the year to September, exceeding forecasts, in the final major economic data release before next month's midterm elections. The increase, up from 3.4% in August, was driven by a spike in gasoline prices following Middle East energy supply disruptions linked to the US-Israel conflict with Iran. Car fuel costs jumped 34.2% over the year, accounting for more than half of September's monthly inflation rise. Core inflation, excluding food and energy, held at 2.6%, while food prices remained flat for the month. The Federal Reserve is watching whether energy costs spill into other sectors, though tariffs have also been found to raise consumer prices modestly.