Gas Prices Are Pushing Inflation Up

Voters heading into the midterms are getting one last reminder of what everything costs. Government data show that inflation in September increased to 3.7%, a faster pace than economists expected—the Wall Street Journal says economists it surveyed predicted a 3.6% rate—and well above the Federal Reserve's 2% goal, per the AP. The inflation rate sat at 3.4% in August. The jump was driven largely by fuel: The gasoline index spiked 9.1% and accounted for more than half of the monthly rise, with national averages topping $4.30 a gallon and diesel hovering above $6.20, reports the Washington Post.

The price of plane tickets, which is closely tied to fuel, rose about 22% from the previous year, per the Journal, which notes that the data center boom has also added to inflation woes. The timing is politically fraught for President Trump and Republicans, who've campaigned on easing costs even as wars involving Iran and Russia help keep energy prices elevated. The White House has floated steps such as a diesel export ban and direct payments to households, but frustration persists, per the Post. Economists note that consumer spending and employment remain solid, even as some Americans rely more on savings and credit to keep up.