US inflation jumps to 3.7% in September as Iran war pushes up gas prices | Today’s news

U.S. consumer inflation was stronger than expected in September, government data showed on Wednesday, as Washington’s war with Tehran raised energy costs and deepened pressure on American households ahead of next month’s midterm elections.

The increase underscores voters’ concerns about the high cost of living and comes as President Donald Trump campaigns in states to bolster his Republican Party’s bid to retain control of Congress.

Still, the consumer price index (CPI) rose more than analysts expected in September, rising 3.7 percent year-on-year, the Labor Department said.

That was a significant acceleration from August’s 3.4 percent. Economists had forecast a slightly cooler reading of 3.6 percent, according to MarketWatch.

Inflation accelerated month-on-month as well, from 0.4 percent in August to 0.6 percent last month.

Gasoline costs accounted for more than half of that jump, up 9.1 percent on the month, Wednesday’s report said.

Excluding the volatile food and energy sectors, core CPI rose 2.6 percent from a year earlier.