And the final government inflation report before November\u2019s pivotal midterm elections will most likely reflect how much of a headache it has become for businesses and consumers.<\/p>\n
The Bureau of Labor Statistics is set to release its September consumer price index report at 8:30 a.m. Wednesday. It\u2019s expected to show the annual rate of inflation rose to 3.7% from 3.4%, according to a survey of economists from Dow Jones. From August to September, prices are expected to have risen by 0.6%. The monthly jump, if it is confirmed, would also be one of the largest in years. <\/p>\n
Since August, oil prices have risen to more than $105 per barrel from about $80. The price of regular gas, which most consumers buy, also remains elevated by more than 45% since late February, when the Iran war was launched. <\/p>\n
As early voting kicks off this week, a higher inflation reading would come at a precarious moment for Republicans defending majorities in the House and the Senate. Polls consistently find that inflation and the high cost of living are top issues this year for voters in both parties.<\/p>\n
Higher diesel prices this summer and fall have hit agricultural states like Kansas, Iowa and Texas especially hard. Long viewed as Republican strongholds, all three states have Democrats outperforming in Senate races <\/a>with campaigns focused on the high cost of living.<\/p>\n In response to the outcry over the high cost of gas and diesel, President Donald Trump has pulled several policy levers in recent weeks aimed at pushing down prices. But so far, none of them has made much of a dent.<\/p>\n The Trump administration has pressured Group of Seven allies to release more diesel stocks<\/a>, issued an order to allow more widespread use of tax-free diesel<\/a> and announced a deal with Russian President Vladimir Putin<\/a> under which Russia would release some diesel supplies and drop some of its export restrictions.<\/p>\n The latest action has drawn global backlash<\/a> after Trump also eased some sanctions on Russia to facilitate the Russian diesel deal.<\/p>\n Core concerns<\/p>\n Consumers\u2019 wages are still lagging behind the rate of inflation. As of September, wage growth was 3%, and it has not grown faster than inflation since March. <\/p>\n Still, despite the pressure on prices and wages, consumers continue to spend. The CEOs of the nation\u2019s largest banks reported Tuesday that consumers continue to spend at a steady pace.<\/p>\n \u201cWhile various headwinds, most recently higher energy prices, and tighter monetary policies have been challenging, the global economy has held up remarkably well in the U.S.,\u201d Citigroup CEO Jane Fraser said. \u201cWhile much has been made of the AI boom, the consumer is still driving much\u201d of the economy\u2019s momentum, she added. <\/p>\n Wells Fargo CEO Charlie Scharf said, \u201cOur data shows that our consumer and business customers are doing well.\u201d JPMorgan Chase CEO Jamie Dimon said the economy \u201ccontinued to be fueled by strong business investment and ongoing consumer spending\u201d over the last three months. <\/p>\n Core inflation, which strips out food and energy prices and is more closely watched by the Federal Reserve, is expected to rise, as well, to 2.5%. If it is confirmed, that would be its highest level since June.<\/p>\n One key sector fueling higher core inflation is airfare. \u201cAirfares remain the core category most directly affected by higher oil prices,\u201d said economists at Morgan Stanley. \u201cAirfare CPI is already up 23% y\/y, which raises the question of how much further prices can increase.\u201d <\/p>\n They noted that jet fuel prices have risen 90% since this time last year \u201cand typically account for roughly 20-30% of airline operating costs.\u201d As a result, airlines \u201cmay already be approaching full pass-through of the increase in fuel costs to consumers.\u201d <\/p>\n iPhones and interest rates<\/p>\n Another major consumer item that could affect September\u2019s inflation rate: pricier iPhones. <\/p>\n Apple\u2019s latest iPhone began selling Sept. 12, and Morgan Stanley\u2019s economists said, \u201cPrice increases were generally in the 10%-14% range across models.\u201d<\/p>\n 01:45<\/p>\n \u201cGiven Apple\u2019s roughly 50% share of the U.S. smartphone market,\u201d that could translate into what they said could be a small upside impact on overall inflation.<\/p>\n But while the higher iPhone prices are likely to be contributing to September\u2019s inflation, they are also the product of inflation earlier this year \u2014 inflation that traces back to the ever-expanding buildout of AI data centers. <\/p>\n The race to build data centers and chips for AI has triggered a scramble for memory, in particular. Given that the supply of memory chips is limited, prices have soared at an unprecedented pace. <\/p>\n![\"President](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/10\/261013-Trump-aa-542-995ba5.jpg\")
President Donald Trump signed an executive order to lower the cost of diesel fuel at a campaign rally in Nebraska this month.Win McNamee \/ Getty<\/p>\n![\"Hollywood](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/10\/261013-Burbank-airport-aa-548-96bce4.jpg\")
Planes take off from Hollywood Burbank Airport on Tuesday.Myung J. Chun \/ L.A. Times via Getty<\/p>\n![\"\"\/](\"https:\/\/media-cldnry.s-nbcnews.com\/image\/upload\/rockcms\/2026-01\/asterisk-43f04b.svg\")
FOR SUBSCRIBERS![\"Why](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/10\/260625-stern-rising-tech-prices-v2.00_03_07_05.Still004-2j336z-o85d1j.jpg\")
Why laptops, tablets and phones are skyrocketing in price<\/p>\n