The Price is Wrong: Why Inflation’s Accelerating

Inflation is accelerating again, and the final report before Election Day landed with a jolt. Prices rose 3.7 percent year-over-year in September, the highest reading since May, driven overwhelmingly by gasoline costs that are up 34 percent over the past twelve months. The report arrives at a politically toxic moment for Republicans, who control Washington and must defend a war with Iran and tariff policies that economists warned would raise prices. Meanwhile, a new sexual assault allegation at a University of Chicago fraternity echoes a high-profile case at Cornell, and Ukrainian officials say critical satellite communications provided by the U.S. suddenly stopped working during a Russian attack.

Inflation accelerates, and the politics get harder

The Bureau of Labor Statistics' monthly inflation report showed prices rising faster than they have since spring. The headline number—3.7 percent annual inflation—represents an unwelcome reversal after months of modest cooling. Half of the monthly increase came from gasoline alone. But the report also revealed price pressures spreading beyond energy: rent, childcare, tuition, and other services are all climbing, which economists read as a sign that inflation could persist even after oil prices stabilize.