Local & Community
Inflation Rises to 3.7% as Iran War Drives Up Energy Costs Ahead of Midterms
Inflation is rising again, putting added pressure on American households just weeks before the midterm elections.
The latest government report shows inflation climbed to 3.7% in September, driven largely by higher energy costs linked to the war in Iran. The White House acknowledged the disappointing numbers as President Donald Trump continues to promote his economic agenda on the campaign trail.
National Economic Council Director Kevin Hassett called the latest inflation figures disappointing.
Higher diesel prices are also contributing to increased costs across the economy. NBC News business reporter Allie Canal says diesel is essential to transporting goods by ship and train, as well as powering the tractors used to produce food.
With the economy a leading concern for voters, candidates are hearing from constituents worried about rising expenses. Republican Senate candidate and Representative Ashley Hinson says farmers are uneasy about current economic conditions, while Democratic Iowa state Representative and Senate candidate Josh Turek says voters are raising concerns about gasoline and diesel prices.
According to GasBuddy, gasoline prices have remained above $4 a gallon for 158 days, setting a new record.
Trump has told voters that relief is coming, saying prices will fall when the war in Iran ends. But with the conflict continuing into its eighth month and inflation outpacing wage growth, many families say it is becoming increasingly difficult to cover basic expenses.
Sydney Jensen, a Nebraska teacher, wife, and mother, says the cost of everyday living has become overwhelming.
Inflation is also affecting older Americans living on fixed incomes. Social Security recipients will receive a 3.6% cost-of-living adjustment next year, adding approximately $75 per month on average. Advocates say the increase may still fall short of covering rising expenses.
By: NBC Palm Springs
October 14, 2026
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