Inflation Hit 3.7% and Gasoline Did More Than Half the Damage. The Fed Should Not Hike Into a War-Driven Fuel Spike
September's consumer prices rose 0.6%, and the government says gasoline alone accounted for over half of the jump while core inflation sat at 2.6%. In our view, the Federal Reserve should hold at its Oct. 27–28 meeting and Washington should attack the supply shock at its source.
By Clara Hughes
ALTAS WORLD NEWS OPINION | By Clara Hughes, Chief Opinion Editor | October 15, 2026 | 6-min read If you filled your tank in September, you already know the headline. The Bureau of Labor Statistics reported Wednesday that consumer prices rose 0.6% last month and 3.7% over the past year, up from 3.4% in August [1]. One item did most of the damage: gasoline jumped 9.1% in a single month, "accounting for over half of the monthly all items increase," in the government's own words [1]. In our view, that is the most important sentence in the report, and it should shape what the Federal Reserve does when it meets Oct. 27–28. Key Takeaways Headline inflation rose to 3.7% over 12 months; the energy index is up 20.4% and gasoline is up 34.2% from a year ago [1]. Core inflation, which strips out food and energy, rose 0.3% in September and 2.6% over the year [1]. Food prices were unchanged for the month, and grocery prices fell 0.1% [1]. Paychecks lost ground: real average hourly earnings fell 0.5% in September and 0.7% over the year [2]. San Francisco Fed President Mary Daly says more rate hikes are likely but sees no need to act this month [3]. Here is why this matters to you. A fuel