Filling up the tank got noticeably more expensive last month, and the effect rippled through the entire economy.
Rising gasoline prices pushed annual inflation to 3.7% in September, up from 3.4% in August, according to consumer price index data the Bureau of Labor Statistics released Oct. 14, 2026.
How much did prices rise in September?
Consumer prices climbed 0.6% from August to September, the fastest monthly increase since April. That matched what economists expected.
The annual rate came in slightly hotter than forecast. Economists had predicted 3.6%, while the actual figure reached 3.7%. A year ago, annual inflation stood at 3% in September 2025.
The consumer price index tracks what urban consumers pay for a broad basket of goods and services, from groceries and rent to medical care and airline tickets. It is one of the most closely watched measures of inflation in the country.
How much did gasoline prices rise?
Sharply. The gasoline index jumped more than 9% in September after climbing 3.9% in August. Over the past year, gasoline prices are up 34%.
The bureau said gasoline accounted for more than half of the overall monthly increase in consumer prices. Energy has replaced housing as the main force behind inflation this year. In 2024 and 2025, shelter and other services drove much of the increase.
Drivers have felt it directly. A gallon of regular averaged about $4.33 nationally in September, according to AAA, and reached about $4.41 on Oct. 1 and stood near $4.37 a week later.
Why are gasoline prices climbing?
Energy markets have been under strain. Conflict involving Iran and disruptions to shipping through the Strait of Hormuz, a key route for global oil supplies, have pushed crude and fuel costs higher this year.
Gasoline prices had eased after peaking in May, but that relief faded by late summer as oil prices resumed their climb. Analysts had warned in September that energy would likely add to inflation again this fall.
What does this mean for the Federal Reserve?
The report lands at a delicate time. The Fed raised its benchmark interest rate range to between 3.75% and 4% on Sept. 16 and meets again Oct. 27 and 28. This is the last major inflation report before that meeting.
Policymakers often look past energy swings and focus on core inflation, which excludes food and energy. Core inflation stood at 2.4% over the year through August, far below the headline rate. A steady core reading would suggest the surge remains concentrated in energy rather than spreading more broadly.
The job market adds another complication. Employers added only 29,000 jobs in September, which had lowered expectations for another rate hike this month. Before the report, markets saw about a one in four chance of a hike at the October meeting.
How do gasoline prices affect household budgets?
Fuel costs hit families quickly and visibly. Higher gasoline prices raise the cost of commuting and errands, and they can also lift prices for goods that depend on trucking and delivery.
Households with lower incomes tend to feel the squeeze most, since transportation takes up a larger share of their spending. Rural residents, who often drive longer distances, can also feel a heavier impact.
Rising costs at the pump also come just weeks before the Nov. 3 midterm elections, when the cost of living is a top concern for many voters.
For now, consumers will be watching the pump closely. If gasoline prices keep rising into the fall, inflation could stay elevated in the months ahead. Some drivers may look for ways to save, such as comparing station prices, combining trips or keeping tires properly inflated to improve mileage.
