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Inflation accelerated in September as a sharp increase in gasoline prices outweighed modest relief at the grocery store.
Inflation accelerated in September as a sharp increase in gasoline prices outweighed modest relief at the grocery store.
According to the Bureau of Labor Statistics’ September 2026 Consumer Price Index report, consumer prices rose 0.6% during the month and 3.7% over the past year, up from August’s 3.4% annual rate.
Gasoline accounted for more than half of September’s overall monthly increase. But the experience varied considerably across household expenses: groceries edged lower, restaurant prices continued climbing, and housing costs increased.
Major household expenses at a glance
| Category | September change | Change over 12 months |
|---|---|---|
| Overall consumer prices | +0.6% | +3.7% |
| Core CPI, excluding food and energy | +0.3% | +2.6% |
| Groceries | -0.1% | +1.8% |
| Food away from home | +0.2%* | +3.5% |
| Gasoline | +9.1% | +34.2% |
| Electricity | +0.2% | +4.4% |
| Utility natural gas | -0.3% | +5.0% |
| Shelter | +0.4% | +3.2% |
| Medical care | +0.1% | +1.5% |
Monthly changes are seasonally adjusted except food away from home, which BLS reports here on an unadjusted basis. All annual changes are unadjusted.
Food: Some grocery relief, but mixed results across the aisles
Overall food prices were unchanged in September, combining a 0.1% decline in grocery prices with a 0.2% increase in food away from home.
Several grocery categories became less expensive:
- Dairy products fell 0.9%, including a 2.0% decline in milk prices.
- Meat, poultry, fish and eggs declined 0.5%, with beef down 1.0%.
- The “other food at home” category slipped 0.2%.
Other purchases cost more. Nonalcoholic beverages increased 0.9%, including a 1.5% rise in carbonated drinks. Fruits and vegetables rose 0.5%, while cereals and bakery products edged up 0.1%.
Over the past year, groceries increased 1.8%, compared with 3.5% for food away from home. Eating out continued to show faster annual price growth than food purchased for home preparation.
Energy: Gasoline delivers the biggest increase
Gasoline prices jumped 9.1% on a seasonally adjusted basis in September. Before seasonal adjustment, the increase was 6.5%. Prices were 34.2% higher than a year earlier.
The broader energy index increased 5.2% during the month and 20.4% over the year.
Heating expenses also deserve attention. Fuel oil rose 15.3% in September and 74.2% over the past year. Utility bills followed a less dramatic monthly pattern: electricity increased 0.2%, while natural gas declined 0.3%. Both remained more expensive than a year earlier.
Housing: Costs continue moving higher
Shelter prices rose 0.4% in September and 3.2% over the past year.
Within the category, rent increased 0.2%, and owners’ equivalent rent rose 0.3%. Lodging away from home increased 2.0%, following another sizable increase in August.
The results show continued housing-related price pressure, even though individual components moved at different speeds.
Transportation and travel: Airfares rise, used vehicles rebound
Airline fares increased 1.2% in September and stood 22.4% above their year-earlier level.
Used cars and trucks rose 0.7% during the month, although their prices remained 1.5% below a year earlier. New vehicle prices increased 0.2% and were up 0.6% annually.
That distinction matters: a monthly rebound does not necessarily mean prices have risen over the full year.
Health care and other expenses: A mixed picture
Medical care prices increased 0.1% in September. Hospital services rose 0.7%, while prescription drug prices declined 1.2%. Physicians’ services were unchanged.
Elsewhere, recreation increased 0.5%, education rose 0.6%, and apparel climbed 0.3%. Communication prices declined 0.2%.
September’s report shows why a single inflation number cannot describe every household’s experience. Drivers and fuel-oil users faced particularly sharp increases, while some grocery and prescription purchases offered relief. The overall direction was higher, but the impact depended heavily on what households bought.
Source: BLS, US Dept of Labor