Prices rose 3.7% over the 12 months ending in September, the Bureau of Labor Statistics reported Wednesday, up from 3.4% in August.
By the numbers: The all items index rose 0.6% in September after a 0.4% rise in August, and 3.7% over the past 12 months. Core prices, which exclude food and energy, rose 0.3% on the month and 2.6% on the year.
- The gasoline index rose 9.1% in September and 34.2% over the past 12 months. Fuel oil is up 74.2% on the year.
The big picture: Energy is carrying the whole number. The energy index climbed 5.2% in September and 20.4% over 12 months, while food was flat on the month and up 2.5% on the year.
Zoom in: Shelter, the largest single piece of the index, rose 0.4% in September and 3.2% over the year. Airline fares rose 1.2% on the month and 22.4% over 12 months, the sharpest 12-month climb of any major category outside energy.
- Groceries went the other way: food at home dipped 0.1% on the month, with beef down 1.0% and milk down 2.0%.
Yes, but: Prescription drug prices fell 1.2% in September and medical care commodities are down 3.3% over the year, so the squeeze is concentrated at the pump and in rent.
What's next: The 2027 Social Security cost of living adjustment is set from this same inflation series, and the Social Security Administration announced a 3.6% increase the same morning.
Why it matters: Gasoline and shelter are the two line items households feel every week, and a 3.7% annual rate keeps pressure on the Federal Reserve to hold rates high, which flows straight into mortgage and car loan costs.
