Colby Smith reports for the New York Times:
Higher energy prices drove up inflation in the United States in September, a warning shot to President Trump ahead of midterm elections that have centered primarily on affordability concerns. The uptick in consumer prices will also keep the Federal Reserve under pressure to raise interest rates for a second time this year.
The Consumer Price Index report, released by the Bureau of Labor Statistics on Wednesday, showed that overall prices rose 0.6 percent, the largest monthly increase in five months. Compared with the same time last year, prices were 3.7 percent higher.
“Average hourly earnings, adjusted for inflation, fell 0.5 percent in September, and were down 0.7 percent from a year earlier. It was the sixth straight month of year-over-year declines in real earnings.
Average hourly earnings are now back to almost where they were when Mr. Trump was sworn into office for the second time in January 2025, meaning that, on average, Americans have experienced zero wage growth, in real terms, since he returned to the White House.”