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US inflation rises more than expected ahead of midterm elections

US inflation rose by more than expected in the year to September, according to official figures, in the final data release before the midterm elections next month.

Inflation was above forecasts, driven by higher gasoline prices which have spiked following disruption to Middle East energy supplies due to the US-Israel conflict with Iran.

Inflation is the rate at which the price of products or services increase over time.

Officials from the Bureau of Labor Statistics measure inflation through the consumer price index (CPI).

These are things purchase for their day-to-day lives and the the Bureau of Labor Statistics uses the data to work out the overall level of inflation in the US economy.

Cars and radios were not included in early data, while ice was later replaced by refridgeration in the energy section alongside fuel and electricity.

Higher incomes can also lead to higher demand, for example, which in turn pushes up prices.

Supply can also affect inflation. If supply of a product is reduced, but demand remains constant, that will cause prices to rise. A good example of this is crude oil, which is used to make gasoline and diesel.

Inflation has risen to 3.7% in the year to September, which is a higher-than-expected increase fuelled by gasoline prices.

In September alone, they jumped by 9.1%, accounting for more than half of the increase in inflation, according to the Bureau or Labor Statistics.

Experts said the US Federal Reserve - which sets the country's interest rate - will be closely watching to see if energy costs begin to affect other areas of the economy, such as food prices, and drive inflation higher.

Since coming into office for the second time, President Donald Trump has introduced tariffs on most US trading partners around the world.

Dive deeper

  • US inflation rose by more than expected in the year to September, according to official figures, in the final data release before the midterm elections next month.
  • Inflation was above forecasts, driven by higher gasoline prices which have spiked following disruption to Middle East energy supplies due to the US-Israel conflict with Iran.
  • Inflation is the rate at which the price of products or services increase over time.
  • Officials from the Bureau of Labor Statistics measure inflation through the consumer price index (CPI).
  • These are things purchase for their day-to-day lives and the the Bureau of Labor Statistics uses the data to work out the overall level of inflation in the US economy.
Read the original on BBC News ↗

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