US inflation hits 3.7% as rising fuel prices pose challenge for Trump ahead of midterms

US inflation accelerated in September as rising gasoline prices and persistent price pressures increased the cost of living for American households, adding to the challenges facing President Donald Trump ahead of the November 3 midterm elections.

The Consumer Price Index (CPI) rose 3.7 per cent year-on-year, up from 3.4 per cent in August, according to data released by the US Labour Department on Wednesday. On a monthly basis, prices increased 0.6 per cent, compared with 0.4 per cent in the previous month. The annual rate was above economists' expectations of 3.6 per cent.

Higher energy costs following the US-Israeli war with Iran have added to inflationary pressure. Gasoline prices rose 9.1 per cent in September, accounting for more than half of the monthly increase in consumer prices. Core inflation, which excludes food and energy, also edged higher, reaching 2.6 per cent year-on-year from 2.4 per cent in August.

Rising fuel costs have affected other sectors, including travel. Airfares increased 1.2 per cent during the month and were up around 22 per cent from a year earlier, while hotel prices rose 2 per cent. The continued rise in household expenses has made affordability a major concern ahead of the elections.

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Inflation adds to Trump's midterm challenges

The rising cost of living could create further difficulties for Trump's Republican Party as it seeks to retain control of Congress. NBC News polling figures published in September showed Democrats leading Republicans by 52 per cent to 43 per cent on the question of which party should control Congress. Trump's approval rating has also weakened, adding to concerns for Republicans ahead of the vote.

Facing pressure to bring down fuel prices, Trump struck a deal with Russian President Vladimir Putin to allow Russian diesel supplies to reach the US and other markets. The move marked a shift from Washington's previous efforts to restrict Russian energy revenues following Moscow's invasion of Ukraine. The deal has drawn criticism from Kyiv, with Zelensky arguing that it could help fund Russia's war effort.

Trump has also urged Zelensky to stop attacking Russian oil refineries and suggested that Ukraine should have a new president. His push for an energy ceasefire between Russia and Ukraine has added another layer to the tensions between Washington and Kyiv, as the US president faces growing domestic pressure over energy prices.