The US September CPI annual rate rises to 3.7%, core CPI rises to 2.6%

Driven by the rebound in fuel prices following the Iran war, the US unadjusted CPI annual rate for September rose to 3.7%, further increasing the cost of living pressures on Americans as the midterm elections approach in November. The unadjusted core CPI annual rate rose from 2.4% in August to 2.6%. After the data was released, US Treasury yields jumped, international gold and silver prices plunged, the US dollar index rose, and the market increased its bets that the Federal Reserve will raise interest rates three more times by the end of 2027. Data released by the US Bureau of Labor Statistics marks the first rebound in the US inflation rate since May, highlighting that the energy price shocks triggered by the Middle East war continue to impact the world's largest economy. After the outbreak of war, gasoline and diesel prices initially soared, then fell back during the summer, but have climbed again in recent months as tensions escalated, pushing diesel prices to historic highs. US President Trump has been trying to contain the impact of rising energy prices. Polls show that dissatisfied voters may shift their discontent towards the Republican Party in next month's midterm elections, which will decide control of Congress.