US Inflation Jumps to 3.7% on Energy, Fueling Rate Hike Bets
The Facts
- U.S. consumer prices rose 0.6% in September and 3.7% from a year earlier, up from an annual rate of 3.4% in August, the Bureau of Labor Statistics said Wednesday. Economists had forecast a 0.6% monthly gain and a 3.6% annual increase.
- Gasoline prices jumped 9.1% in September and accounted for more than half of the monthly increase in the index. Over 12 months, gas climbed 34.2%, fuel oil used for home heating rose 74.2% and overall energy costs were up 20.4%.
- Core CPI, which excludes food and energy, rose 0.3% for the month and 2.6% from a year earlier, exceeding forecasts of 0.2% and 2.5%. Shelter costs increased 0.4%, used car and truck prices gained 0.7% and apparel rose 0.3%.
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The Spin
Democratic narrative
The president who promised to end inflation on day one has delivered the opposite, and the war he chose is the reason. Gas, airfares and the diesel in every delivery truck all cost more, while paychecks fall behind. The pledge that put Trump back in the White House has collapsed, and voters who feel it every week have good reason to send Congress someone who will check him.
Republican narrative
A few painful months at the pump are the cost of stopping a nuclear Iran, and the president accepted that cost instead of leaving the threat for someone else. The spike should pass as oil flows again, and prices outside energy are barely moving. Democrats pointing at the pump are counting on voters to forget who sent prices soaring before, and voters want strength abroad.
