Washington D.C — Today, the Bureau of Labor Statistics (BLS) released its latest inflation report, showing overall prices rose 3.7% from a year ago and that August was the largest single-month increase in inflation since May, largely driven by rising gas and diesel prices due to the war in Iran. Core inflation, meaning the change in everyday prices in goods besides food and energy, also increased, with the cost of housing, clothing, and more all rising. Prices are also hiking faster than average wage increases, making life even less affordable for working families.
Gas prices have risen 45% since February, a direct result of the ongoing war on Iran. Additionally, diesel prices have climbed over 70% over the same time period. However, cost increases aren’t limited to fuel. The price of housing, clothing, plane tickets, and more have all risen, stretching Americans’ pocketbooks even more thanks to tariffs and the war in Iran. Republicans in Congress repeatedly voted to continue the tariffs and the war in Iran.
“This latest inflation report highlights the toll that skyrocketing prices are taking on American families,” said Unrig Our Economy Campaign Director Leor Tal. “These higher costs are the direct consequence of policies in Washington, but it is everyday Americans who have to face the brunt of higher prices. More and more working families will be hurt if these cost increases continue to accelerate.”
NBC News: Inflation jumps to 3.7% as gas and diesel prices squeeze consumers ahead of the midterms
Key Points:
- Prices rose across broad swaths of the U.S. economy in September, as high energy costs triggered by the Iran war pushed up prices in many major consumer categories.
- The Bureau of Labor Statistics said Wednesday that overall prices rose 3.7% from a year ago, and 0.6% from August. Categories including housing, clothing and restaurant and take out food all saw price increases.
- The report adds to ongoing concerns that persistent inflation is taking a toll on consumers, particularly as wage growth has been stagnant. As of September, the growth in wages was pacing at 3% on an annual basis. Paychecks have not grown faster than inflation since March.
- Core inflation, which excludes food and energy prices, also rose to 2.6% from a year ago, or 0.3% from August. This was also slightly more than had been expected.
- Since August, oil prices have risen to more than $106 per barrel from about $80. The price of unleaded gas, which most consumers use, has risen 45% since late February, when the United States and Israel launched the Iran war. The price of diesel, which powers businesses, farms, the shipping industry and other critical sectors, has soared 70% over the same period.
- A Fed hike could add even more pressure to consumers, raising the cost of other forms of credit such as credit cards, personal loans and vehicle loans.
To learn more about the campaign, visit UnrigOurEconomy.com or contact press@unrigoureconomy.com
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About Unrig Our Economy
Unrig Our Economy is a national campaign to fix the rules of our economy to make it work for working people. We know that when the middle class does well, all of us do well — which is why we’re fighting on behalf of working Americans and holding corporations, their wealthy executives, and the politicians who enable them accountable.