Rising Gasoline Prices Fuel Fresh Inflation Fears in the U.S.
Rising gasoline and energy prices are driving U.S. inflation concerns, with economists expecting a 0.6% monthly increase in September. Public sentiment links these costs to current political policies, potentially influencing upcoming election outcomes.
Why it matters
Energy costs are a primary driver of consumer inflation, significantly impacting household budgets and voter sentiment in the U.S. economy.
A surge in energy costs is expected to drive overall U.S. consumer inflation higher, with September numbers seen at 0.6% on a monthly basis by economists polled by Reuters. The official CPI data for September is due out later today. Gasoline prices in the United States went up by 7.1% last month, with the latest daily average national price at $4.3413 per gallon, according to AAA. This is close to what the average was a month ago, with the difference at $0.028 per gallon. Diesel prices, however, remain stubbornly high, at above $6 per gallon, although they are off their all-time high of over $6.50 per gallon. Another Reuters poll suggested that well over two-thirds of Americans, or 78%, are blaming Trump policies for the rise in the cost of living. Among specific policies, respondents in the poll noted the war in Iran and tariffs on imports.
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