Inflation rose three-tenths of a percentage point to 3.7% for the year ending in September, the Bureau of Labor Statistics reported in an update to the consumer price index on Wednesday, a sign that the price pressures that have soured voters on President Donald Trump and the GOP are rising before the midterm elections next month.
In September alone, prices rose 0.6%.
Inflation is well above the Federal Reserve’s target of 2%, and the data comes after the Fed hiked interest rates at its last meeting in an effort to tamp down price increases.
CONSUMER SENTIMENT HITS SECOND-LOWEST MARK ON RECORD IN DIRE THREAT TO GOP
The report is clearly bad news for the Trump administration, which has been working to reassure voters weary of price hikes, especially given that the November election will determine if Republicans hold the House of Representatives and the Senate.
The rate of core inflation, a measure that strips out volatile food and energy prices, rose two-tenths of a percentage point to 2.6% for the year ending in September.
Inflation and affordability are the top concerns for voters in the midterm elections, and recent surveys have shown that many voters blame Trump for the recent uptick in prices and for not returning inflation to healthy levels after running on doing so in the 2024 presidential election.
Much of the recent wave of inflation comes as a result of the war with Iran, which started in late February and caused oil prices to spike, driving up headline inflation as a result.
Given this is the last consumer price index report before the elections, it will be closely scrutinized.
The Fed, led by Trump’s pick for chairman, Kevin Warsh, recently raised interest rates for the first time in defiance of the president’s wishes. The Fed raised its interest rate target by 0.25 percentage points to a range of 3.75% to 4%, a move that was done to help drive down price growth.
High inflation has driven consumer sentiment to record lows in recent months.
High gas prices, in particular, have dragged down Trump’s approval rating to new lows.
THE DETAILS OF SEPTEMBER’S JOBS REPORT ARE MORE ENCOURAGING
Apart from inflation, the economy appears to be in good shape. Even though consumers say they are miserable, consumer spending has been strong. Job growth has been robust enough to keep unemployment trending down, and claims for unemployment benefits are at ultra-low levels.
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[ H/T Washington Examiner ]
