U.S. Inflation Spikes Before Midterms

U.S. consumer prices rose 0.6% in September, pushing annual inflation to 3.7%, above economists’ expectations. The increase followed a 3.4% annual rate in August and came as affordability dominated the midterm campaign. The Iran conflict has disrupted energy supplies and lifted fuel costs, adding pressure while the Federal Reserve tries to bring inflation near 2%. A White House economic adviser called the report disappointing but defended President Trump’s policies. The White House said Trump’s agenda had softened the prior inflation crisis and called Iran-related price shocks temporary. Gasoline drove more than half the monthly rise. The Fed meets October 27–28.