US inflation rises to 3.7% as energy price shock hits household budgets

US inflation rose to 3.7% in September, up from 3.4% in August, according to the latest Consumer Price Index figures released by the Bureau of Labor Statistics. Prices increased by 0.6% over the month, exceeding economists’ expectations, as the economic fallout from the Iran war continued to drive up energy costs and put further pressure on household budgets.

Gasoline prices surged by 9.1% in September, accounting for more than half of the monthly rise in inflation. But the impact extends well beyond the pump, with higher costs affecting transport, healthcare, clothing and other everyday essentials. The figures underline how dependence on fossil fuels leaves households exposed to geopolitical shocks and volatile energy markets.

Candice Fortin, US Campaigns Manager at 350.org, said:

“What we are witnessing is fossilflation – real, direct and hitting people where it hurts: their pockets. When dependence on fossil fuels leaves household budgets at the mercy of war and volatile global markets, it is ordinary people who pay the price for an energy system built around fossil fuels. Rising gas prices are squeezing household budgets, and the impacts are spreading across the economy, making everyday life more expensive at a time when many families are already struggling to get by.

“We cannot keep asking households to absorb the costs while fossil fuel companies benefit from market volatility. Governments must accelerate a fair transition to affordable, homegrown renewable energy, so people have greater energy security and are no longer held hostage to the next fossil fuel crisis.”