US inflation rises more than expected ahead of midterm elections

The pace of price rises increased to 3.7% in the year to September, driving by higher motor fuel costs. US inflation rose by more than expected in the year to September, according to official figures, in the final data release before the midterm elections next month. The pace of price rises increased to 3.7%, up from 3.4% in the 12 months to August. Inflation was above forecasts, driven by higher gasoline prices which have spiked following disruption to Middle East energy supplies due to the US-Israel conflict with Iran. The elections are being fought over cost of living pressures across the US. Inflation is the rate at which the price of products or services increase over time.

For example, if a bottle of milk costs $1 but rises to $1.10 a year later, then annual inflation for bottled milk is 10%. Officials from the Bureau of Labor Statistics measure inflation through the consumer price index (CPI). It tracks the price changes of hundreds of day-to-day items including fresh food, gasoline and medical services to work out the overall level of inflation in the US economy. The bureau updates this so-called basket of goods over time as peoples' spending and lifestyle habits change. There are several factors that can cause inflation to rise. If demand for a product outstrips its supply,