US inflation hits 3.7% in September, complicating Republican midterm campaign

US inflation rose to 3.7% annually in September, up from 3.4% in August, according to a government report released Wednesday, delivering a blow to Republicans ahead of the midterm elections amid widespread voter anger over living costs. Gasoline prices, up 34% from last year, drove over half of the overall increase, while fuel oil rose 74% and air travel 22.4%. Core inflation, excluding energy and food, ticked up 0.3% to 2.6% annually, with the US-Israel war with Iran cited as a key driver of soaring energy costs. September’s rate is the highest before a midterm since 1990, excluding the pandemic, and 78% of Americans blame Trump administration policies for inflation outpacing earnings, per a Reuters/Ipsos survey. The Federal Reserve faces pressure to raise interest rates further, with 30-year mortgage rates already at 7.40%.