September inflation hits three point seven percent

Consumer prices rose three point seven percent from a year ago, according to a Labor Department report released Wednesday. That's a larger annual increase than August.

Energy prices drive the spike higher

Rising gasoline and diesel prices pushed inflation up. Heating oil costs jumped seventy four percent in the last year, straining families in New England who rely on it for warmth.

Core inflation also climbs

Stripping out volatile energy and food prices, core inflation was two point six percent in September, a bigger annual increase than August. The artificial intelligence boom raised memory chip costs.

Social Security benefits rise three point six percent

The Social Security Administration announced benefits will increase by three point six percent next year, based on prices in July, August and September. The average recipient gets an extra seventy five dollars monthly.

Seniors divided on whether raise is enough

AARP CEO Myechia Minter-Jordan said the increase helps millions keep up with rising costs. But Max Richtman of the National Committee to Preserve Social Security and Medicare said it won't be enough for most seniors…

“It won't be enough for most seniors to even tread water financially.”

Wages lag far behind inflation

Average wages in September rose just three percent, so typical workers' buying power has eroded over the last year. Economist Brian Bethune said workers are saying something isn't right with that.

“I'm working harder. I'm more productive. And this is not a square deal.”

Fed faces pressure to raise rates

Beth Hammack of the Cleveland Federal Reserve Bank warned that repeated supply shocks could entrench inflation if people expect higher prices and raise them preemptively. The Fed meets in two weeks to discuss interest rates.

“This could be a sign that an inflationary mindset is taking hold.”