Inflation Hits Three-Year High as Midterms Loom

The Personal Consumption Expenditures index rose 3.6% in September, up from 3.4% in August. Core inflation, which excludes volatile food and energy costs, climbed to 3.1%. Heather Long, chief economist at the Navy Federal Credit Union, noted that while the Iran conflict remains a primary driver, inflationary pressure is now broadening into the service and housing sectors.

The Cost of Conflict

The economic strain is particularly visible at the pump, where gasoline averages $4.23 per gallon and diesel $6.33. Brown University’s Costs of War Project estimates US households have collectively spent $147 billion more on fuel since the onset of the Iran conflict. Despite this, oil majors including Shell and TotalEnergies reported significant quarterly profits, with Chevron and ExxonMobil expected to follow. Alex Jacquez of the Groundwork Collaborative argued that these figures demonstrate an economy failing working families, noting that the administration is prioritizing industry windfalls over price stability. Sen. Ed Markey echoed these concerns, stating that small business owners are currently bearing the brunt of these economic policies as margins tighten across the country.