US Inflation Accelerates to 3.7% in September on Surging Energy Costs
The United States inflation rate (ECONOMICS:USIRYY) picked up speed in September 2026, reaching an annual rate of 3.7%. The increase came after two consecutive months at 3.4% and topped analyst expectations of 3.6%. On a monthly basis, consumer prices advanced 0.6%, marking the sharpest monthly jump in five months and matching market projections.
Surging energy expenses served as the primary catalyst behind the higher reading. Gasoline prices climbed 34.2% from a year earlier, building on August's 27.4% rise, while fuel oil surged 74.2%. Over the month, a 9.1% jump in gasoline costs accounted for more than half of the total consumer price index expansion. Higher costs were also recorded across shelter, recreation, used vehicles, education, airfares, medical care, and apparel, while food price growth cooled to 2.5% annually.
Core inflation, which strips out volatile food and energy components, also came in hotter than anticipated. The annual core CPI rose to 2.6% against forecasts of 2.5%, while monthly core inflation remained steady at 0.3% instead of easing to 0.2% as predicted. Market participants will keep a close watch on persistent energy pressure and housing costs to gauge whether price pressure remains sticky heading into the final quarter of the year.
Key points
- US annual inflation rose to 3.7% in September 2026, exceeding expectations of 3.6%.
- Higher energy costs drove the increase, with gasoline up 34.2% year-over-year and fuel oil up 74.2%.
- Monthly CPI grew 0.6%, its largest gain in five months, driven by a 9.1% monthly spike in gasoline.
- Annual core inflation reached 2.6%, higher than the expected 2.5% rate.
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What was the US annual inflation rate in September 2026?
The annual inflation rate in the US rose to 3.7% in September 2026, up from 3.4% in August and exceeding market expectations of 3.6%.
What caused US inflation to accelerate in September 2026?
Higher energy prices drove the acceleration, led by a 34.2% year-over-year increase in gasoline and a 74.2% jump in fuel oil. Gasoline alone rose 9.1% over the month.
What was the core inflation rate for September 2026?
Annual core inflation, which excludes volatile food and energy costs, rose to 2.6% in September 2026, above forecasts of 2.5%. Monthly core CPI held steady at 0.3%.