The Newshound

US inflation heats up to 3.6% days before the midterms as gas averages $4.25 despite Trump's $2 pledge

Donald Trump, whose poll ratings on the economy are falling as voters head into next week's midterms, with core inflation also creeping higher to 3.1% in September as the Iran war drives oil above $100 a barrel.
Donald Trump, whose poll ratings on the economy are falling as voters head into next week's midterms, with core inflation also creeping higher to 3.1% in September as the Iran war drives oil above $100 a barrel.

The Federal Reserve's preferred inflation measure, the PCE index, accelerated to 3.6% in September — up from 3.4% in August — with monthly prices climbing 0.5%, the sharpest monthly rise since May. The Iran war has pushed oil above $100 a barrel, driving petrol to a national average of $4.25 a gallon, more than double Trump's 2024 campaign pledge to cut it below $2. Economists warn that price pressures are broadening beyond fuel into services including shipping, hotels and utilities.

Core inflation also crept higher, rising to 3.1% year-on-year in September from 3% in August.

TD economist Ksenia Bushmeneva warned: 'The inflation outlook has become more concerning — underlying pressures are broadening.'

Polls show most voters now give Trump poor marks on the economy, making cost of living the central issue heading into next week's midterms.

MoreThe IndependentInflation heats up again, data shows, days before midterm elections where cost of living dominatesNYTInflation Accelerated in October, PCE Index ShowsAPInflation accelerated last month, highlighting affordability issues before electionNY PostKey inflation gauge heats up thanks to high gas prices — day after Fed hits pause on rate hikes
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