US inflation hit 3.7% in September. Here’s the one category behind a third of it
• Finance
US consumer prices rose 3.7% in the 12 months to September (up from 3.4% in August), the Bureau of Labor Statistics reported on October 14. Energy grew significantly, more than anything else. It makes up less than 10% of what a typical household spends, but it accounted for roughly 1.3 of the 3.7 percentage points. A year ago, energy added less than 0.2 points.
Key takeaways
- Annual inflation reached 3.7% in September, the highest since May (4.2%).
- Energy prices rose 20.4% in a year, with gasoline up 34.2%.
- Energy added about 1.3 percentage points to the rate, more than housing costs (about 1.1 points).
- Food inflation is steady at 2.5%, and groceries rose just 1.8%.
Where September's 3.7% comes from
We split the inflation rate into five groups that together make up everything consumers buy. Each group's contribution depends on two things: how much of the budget it takes up, and how fast its prices rose.
| Group | Price change, 12 months to Sept 2026 | Contribution, Sept 2026 (points) | Contribution, Sept 2025 (points) |
| Energy | 20.4% | 1.31 | 0.19 |
| Shelter (rent and housing costs) | 3.2% | 1.14 | 1.31 |
| Other services (medical care, insurance, travel and more) | n/a | 0.74 | 0.83 |
| Food | 2.5% | 0.34 | 0.42 |
| Goods (cars, clothing, furniture and more) | 0.7% | 0.14 | 0.28 |
| Total | 3.67 | 3.03 |
The big change from a year ago is energy. Its contribution went from 0.19 points to 1.31 points, which is massive. Every other group contributed less than a year ago. Shelter, which had been the largest contributor is now second.
In the month of September alone, prices rose 0.6% after seasonal adjustment, and BLS said gas prices accounted for over half of that increase.
What it means for you
Price changes over the 12 months to September 2026:
- Gasoline: +34.2%. By far the fastest-rising everyday cost, and up 9.1% in September alone.
- Rent: +2.8%. Still rising, but more slowly than overall inflation.
- Groceries: +1.8%. Restaurant meals rose +3.5%.
- Used cars and trucks: −1.5%. Cheaper than a year ago, after rising 5.1% in the year to September 2025.
Methodology
All price changes are for the Consumer Price Index for All Urban Consumers (CPI-U), not seasonally adjusted, over 12 months. They come from the BLS September 2026 CPI release (October 14, 2026) and, for last year, the September 2025 release. The May 2026 rate of 4.2% is based on the CPI-U index on FRED.
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