US inflation accelerated to 3.7% in September, exceeding economists’ expectations. Soaring energy prices drove consumer costs higher, according to new government data released Wednesday.

The annual inflation rate rose from 3.4% in August. It also exceeded the 3.6% forecast by economists surveyed by FactSet, CBS News reported.

The Consumer Price Index (CPI), which measures changes in the prices of everyday goods and services, increased 0.6% from August.

Gasoline prices were the biggest contributor to the increase. Prices at the pump jumped 9.1% in September, accounting for more than half of the monthly rise in consumer prices.

Gasoline costs were 34.2% higher than a year earlier. Fuel oil prices surged 74.2% over the same period.

The broader energy index increased 5.2% in September and 20.4% over the past year. The increases reflected continued disruptions to global energy supplies amid the conflict involving Iran.

According to AAA, the national average for regular gasoline stood at $4.33 per gallon Wednesday. That compares with $2.98 before the war began. Diesel prices averaged $6.29 per gallon.

Higher diesel costs also increase transportation expenses for businesses. These additional expenses can push up prices for groceries and other consumer goods.

Inflation pressures extended beyond energy.

Core inflation, which excludes volatile food and energy prices, increased 0.3% in September and 2.6% over the past year. The annual figure rose from 2.4% in August and exceeded economists’ expectations of 2.5%.

Housing costs continued climbing. The shelter index rose 0.4% in September and 3.2% from a year earlier. Used vehicle prices increased 0.7% during the month.

Airline fares also climbed, rising 1.2% in September and 22.4% over the past year.

However, some categories offered relief to consumers.

According to Breitbart, grocery prices declined 0.1% in September, while overall food prices remained unchanged. Furniture prices fell 0.8%, and prescription drug prices dropped 1.2%.

The latest inflation report could complicate the Federal Reserve’s efforts to bring inflation back toward its 2% annual target.

The central bank raised its benchmark interest rate by a quarter percentage point in September. It was the first increase since 2023. The move brought the federal funds rate to a range of 3.75% to 4%.

Following Wednesday’s report, investors increased their expectations for another interest rate hike at the Fed’s October 27-28 meeting.

The probability of another increase climbed to nearly 45%, up from approximately 22% before the inflation figures were released. The figures were reported by The Daily Caller.

The inflation report also arrives less than three weeks before the November 3 midterm elections. The cost of living remains a major concern among American voters.

An August Reuters/Ipsos poll found that 47% of registered voters considered the cost of living the most important factor in deciding their congressional vote.

The latest report adds to economic concerns following weak September employment figures. Employers added just 29,000 jobs during the month, while the unemployment rate reached 4.2%.