Key takeaways
- The Consumer Price Index rose 3.7% over the past year, up from 3.4% in August.
- Gasoline jumped 9.1% in September and accounted for more than half of the month's increase.
- Core inflation, which excludes food and energy, was 2.6% over the year.
Inflation picked up in September, driven mostly by gas prices. The Consumer Price Index rose 0.6% for the month on a seasonally adjusted basis and 3.7% over the past 12 months, up from 3.4% in August, the Bureau of Labor Statistics reported on Oct. 14.
What got more expensive
- Gasoline: Up 9.1% in September alone, accounting for more than half of the month’s overall increase.
- Energy overall: Up 5.2% for the month.
- Shelter: Rent and housing costs rose 0.4% in September after a 0.3% rise in August.
- Groceries: Food at home was up 1.8% over the past year, with fruits and vegetables up 3.7%.
Food prices overall were unchanged for the month, a small bright spot for family budgets.
Core inflation
Prices excluding food and energy, which economists watch for underlying trends, rose 0.3% in September and 2.6% over the year.
What’s driving it
Energy has been the main story in 2026. Crude oil prices have hovered near $100 a barrel after disruptions in the Middle East this spring sent gas prices above $4 a gallon nationwide. Gas prices then set records for late summer and early fall, according to AAA.
What it means for you
- Your raise: If your pay rose less than 3.7% over the past year, your buying power fell.
- Your savings: Money earning less than inflation loses value. Compare your rate to high-yield savings and I bonds.
- Your debt: The Federal Reserve raised rates in September to fight inflation, which pushes up credit card rates.
- Social Security: The September data finalized a 3.6% cost-of-living adjustment for 2027.
What to do now
Focus on the categories that rose most for your household. For many families, that’s gas and housing. Our guide to beating inflation has a step-by-step plan, and our inflation calculator shows what your savings will be worth in real terms.
The next CPI report, covering October, is scheduled for Nov. 10.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
