U.S. inflation rises to 3.7% in September report

(The Center Square) – U.S. inflation rose 0.6% in September for an annual rate of 3.7%, according to a new report from the U.S. Bureau of Labor Statistics.

The September rate marks a significant increase from the overall 3.4% inflation in July and August. The price index for gasoline rose 9.1% in September, accounting more than half of all price increases. The overall energy index rose 5.2% in September after a 2.1% increase in August.

Across the country, states have passed temporary fuel tax suspensions as oil and gas prices continue to rise. Orphe Divounguy, founder and chief economist of Quantitative Research Group and a former Zillow economist, said the suspensions do not substantially change a household's fuel bill.

The suspensions, in Ohio, North Carolina and Georgia began in October. The delayed timeline means state progress has little effect on September's report.

"The benefit is a smaller bill than the household would otherwise face; it does not necessarily free up money for other spending," Divounguy told The Center Square. "Actual relief depends on local prices and how much of the tax cut reaches consumers."

Annual core inflation increased by 0.3% in September for an increase of 2.6% over the year after August saw a 2.4% increase. Divounguy said rising energy prices continuing to drive up core inflation could be a cause for concern.