U.S. consumer inflation rises to 3.7% in September on costlier gasoline — SkimNews
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- U.S. consumer prices rose 0.6% in September, pushing annual CPI to 3.7% (up from 3.4% in August), driven by a 7.1% surge in gasoline costs that outpaced the 0.6% monthly forecast.
- A Reuters/Ipsos poll found 78% of Americans blamed President Trump's policies—including tariffs and the U.S.-Israeli war with Iran—for prices outpacing wages, with consumer sentiment and Trump's approval rating already deteriorating.
- Core CPI (excluding food and energy) climbed 0.3% in September, matching August, with annual core inflation at 2.6%—trailing the hotter core PCE reading of 3.0% in August that the Fed actually targets.
- The Federal Reserve raised rates 25 bps to 3.75–4.00% last month (its first hike in three years), but markets assigned only a 22% chance of another hike at the Oct. 27–28 meeting prior to the CPI print, with economists expecting the next move in December.
- The Senior Citizens League projected a 3.5% Social Security COLA for 2027 (up from 2.8% in 2026), raising the average monthly retiree benefit by $67.90 to $2,007, with the SSA due to announce the figure later that day.
Why it matters: The September print landed weeks before the Nov. 3 midterms, with 78% of Americans already blaming Trump's tariffs and the Iran war for prices outpacing wages. Retirees face a projected jump in the 2027 Social Security COLA to 3.5%—a $67.90 monthly benefit increase to $2,007—while the Fed's rate path grew murkier after markets had priced just a 22% chance of an October hike.
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