Powered by spikes in energy prices, inflation surges to 3.7%

A gas station advertises gas and diesel prices in Forest Glen, Md., on Oct. 5, 2026. More than half a dozen states have enacted tax relief to ease the burden on consumers as fuel prices continue to surge. (Photo by Jane Norman/States Newsroom)Inflation grew to a 3.7% annual rate in September, according to an Oct. 14 report from the U.S. Bureau of Labor Statistics, up from 3.4% in August.  In the last consumer price inflation report before midterm elections, with voters already fed up with higher prices, September’s number was the highest since May, when it was 4.2%. “Inflation has wiped out wage gains for 6 months now,” Heather Long, the chief economist for Navy Federal, wrote in a social media post. “It’s a financial squeeze. Americans are trying to work more hours to make up for it, but many are still falling behind.” Spikes in energy prices were largely responsible: Gas is now up 34% for the year, and fuel oil, which includes diesel, is up 72% as the Iran war drags on.  States inclu