What happened
The US inflation rate has risen to 3.7% in the year to September, exceeding expectations. This increase is primarily driven by higher gasoline prices, which have jumped by 34.2% over the past 12 months. In September alone, gasoline prices surged by 9.1%, accounting for more than half of the increase in inflation.
Energy inflation has increased by 20.4% over the year, with fuel oil prices rising by 74.2%. However, food inflation remains subdued, with a 2.5% increase over the year. Core inflation, which excludes food and energy prices, stands at 2.6%.
The Social Security Administration has announced a 3.6% increase in Social Security benefits for 2027, which will result in an average retirement benefit increase of $75 per month. This change will affect approximately 72 million people and will take effect in January.
