US inflation at 3% in September: Gas prices rise, rent growth eases; Trump’s tariffs raise consumer goods costs

US inflation remained elevated in September, fueled by a surge in gas prices, even as rent growth slowed, reflecting a mixed picture for consumers in an economy with steady growth but sluggish hiring.According to the labor department report, cited by AP, consumer prices rose 3% from a year earlier—the highest increase since January and up from 2.9% in August. Core prices, which exclude volatile food and energy costs, also climbed 3%, down from 3.1% the previous month.On a monthly basis, price gains eased, with overall consumer prices rising 0.3% in September, compared with 0.4% in August, and core inflation slowing to 0.2% from 0.3%.The report, delayed by the government shutdown that began October 1, leaves uncertainty over October’s inflation data, which may not be released.

Gas prices surge, rent growth slows

Gas prices surged 4.1% in September, a major driver of inflation, while grocery prices rose 0.3%, less than in August, and are up 2.7% from a year ago.Rent for apartments increased just 0.2% in September and 3.4% over the year, the smallest annual rise in nearly four years.“Put simply, while inflation doesn’t appear to be accelerating, neither is it moving back toward target,” said Eric Winograd, chief US economist at AllianceBernstein. “That will keep the Fed cautious rather than aggressive,” he added.

Impact of tariffs on consumer prices

Tariffs imposed by President Donald Trump also pushed up the prices of furniture, appliances, clothing, and shoes. Economists estimate that tariffs are adding about 0.4 percentage points to annual inflation and expect the trend to continue into early next year.Ongoing tariffs continue to affect companies in specific industries. The Trump administration is considering steep duties on imports from Nicaragua, impacting businesses such as French Broad, a chocolate maker.“We’ve been shouldering some significant additional costs,” said co-founder Dan Rattigan, noting higher prices for cocoa, nuts, and chocolate-making equipment, as quoted by AP.The cost of necessities is a growing political issue. Beef prices reached record highs partly due to tariffs and drought-related reductions in cattle herds. Ground beef jumped to $6.32 a pound, and beef costs rose 1.2% in September and 14.7% over the year.Although inflation has fallen sharply from its peak of 9.1% over three years ago, it remains a major concern for consumers. About half of Americans say grocery costs are a “major” source of stress, according to an August AP-NORC poll.