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US inflation rises to 3.7% as petrol costs jump

American consumer prices rose 0.6 per cent in September and 3.7 per cent from a year earlier. Energy drove much of the increase, while firmer core inflation revived expectations that the Federal Reserve may raise rates again.

From 15 October 2026 — Daily Brief

US consumer-price inflation accelerated to 3.7 per cent in September, as higher petrol costs lifted household expenses and increased pressure on the Federal Reserve.

The consumer price index rose 0.6 per cent during the month, following a 0.4 per cent increase in August. The energy index climbed 5.2 per cent, and petrol alone rose 9.1 per cent, accounting for more than half of the monthly headline increase.

Core prices, excluding food and energy, increased 0.3 per cent in September and 2.6 per cent from a year earlier. The annual core rate was above August’s 2.4 per cent and suggested that price pressure was not confined to fuel.

Bond yields and the dollar rose as investors increased the probability of another interest-rate rise. Higher borrowing costs would add to pressure on households, companies and emerging markets that rely on dollar financing.

The data complicate the policy outlook. An energy-driven shock can fade, but persistent core inflation makes it harder for the central bank to look through the headline rise. For Bangladesh, a stronger dollar and higher US rates could affect import costs, external borrowing and capital flows even though the inflation originates abroad.

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