US Inflation Rises to 3.7% in September—Gasoline Drove Half the Monthly Rise While Food Stayed Flat

September CPI data showed the annual inflation rate at 3.7%, up from 3.4%, with gasoline contributing over half the monthly rise. The PPI rose 6.3% year-over-year—the largest since 2022—while retail sales grew 0.8%. Core measures remained lower. Energy costs from Middle East disruptions are the primary driver, with no immediate change to Social Security adjustments set for January. Consumers and businesses face ongoing pressure on fuel and input costs.

Did September's 3.7% inflation mean grocery prices rose 3.7%? No. Gasoline drove about half the monthly increase, while food prices stayed flat.