September CPI Hits 3.7% on Iran War Gas Spike
On Oct. 14, 2026, the Bureau of Labor Statistics reported that consumer prices rose 3.7% in the year through September, up from 3.4% in August and above the 3.6% economists expected — the last inflation reading before the Nov. 3 midterms. Gasoline prices rose 9.1% in the month and accounted for more than half of the overall increase, as the Iran war and the U.S. blockade of Iranian ports kept oil and diesel prices elevated; annual wage growth was running about 3%, behind prices. National Economic Council Director Kevin Hassett conceded on Fox Business that it was "a disappointing number" and "a blip up," blaming an "energy shock," and told NewsNation there was "a whole bunch of good news in the report." Democrats tied the number to the war and to tariffs: Senate Banking ranking member Elizabeth Warren said real wages had fallen six straight months, House Budget ranking member Brendan Boyle said Trump "has done the exact opposite" of his day-one promise, and Chuck Schumer, Andy Kim, Katherine Clark and Pete Aguilar posted attacks on the "GOP economy." No Republican members of Congress had commented on the report at the time of seeding.
“[On Fox Business' "Varney & Co.," agreeing with host Stuart Varney that the report was bad:] Right. You're absolutely right. … But this month was a blip up. But the bottom line is that you're correct, that this was a disappointing number. … A lot of Trump policies are helping to keep inflation down, but the energy shock is really the headline story today.”