Inflation accelerated by 3.7% in September compared to the same time period in 2025, as gasoline and other goods and services became more expensive for American consumers, according to a report by the Associated Press.
The Labor Department also said prices rose 0.6% from August to September, the biggest gain in five months.
The monthly figures were attributed to the lingering effects on gasoline, especially diesel fuel, from the U.S. war with Iran and the four-year war involving Ukraine and Russia.
Gas prices jumped 9.1% just from August to September, the Labor Department said.
Another factor in rising inflation is surging investment in AI data centers, which is putting upward pressure on the price of consumer chips and electronics.
Excluding the more volatile food and energy categories, core prices rose 2.6% in September from a year ago, which is higher than economists had expected.
Higher inflation could prompt the Federal Reserve to increase interest rates when it meets on Oct. 27-28.
The Fed has a dual mandate to fight inflation and boost employment. Its target rate for inflation is 2%.
