# Inflation hits four-month high as war drives gas prices up

> Prices rose 3.7% in September, well above pre-war levels, as the Iran conflict pushes fuel costs higher ahead of midterm elections.
- Title: Inflation hits four-month high as war drives gas prices up
- Summary: Prices rose 3.7% in September, well above pre-war levels, as the Iran conflict pushes fuel costs higher ahead of midterm elections. Inflation climbed to 3.7%…
- Keywords: inflation, gas prices, iran war, federal reserve, midterm elections, consumer spending, labor market, news, hits, four-month, high, war
- Source: ABC News — https://abcnews.com/Business/inflation-report-provide-snapshot-prices-midterms-approach/story?id=137221675
- Author: ABC News
- Read time: 2 min
- Topics: inflation, gas prices, iran war, federal reserve, midterm elections, consumer spending, labor market, news
## Inflation climbs to 3.7% in September
Prices rose 3.7% in September compared to a year earlier, up from 3.4% in August. The reading came in slightly above economists' expectations.
## War pushes inflation well above pre-conflict levels
Inflation stands well above the 2.4% rate recorded in February prior to the outbreak of the Iran war. The Middle East conflict drove inflation to a three year high in May.
## Gas prices surge over nine percent in one month
Gas prices jumped more than nine percent in September from August, accounting for more than half of the overall price increase. The national average gas price stands above four dollars thirty cents a gallon.
## Peace deal collapses, fighting resumes in August
A tentative accord between the U.S. and Iran expired in August, giving way to continued attacks on oil infrastructure and ships. Heightened shipping costs and persistent risks have kept fuel prices elevated.
## Diesel prices up sixty six percent since war began
Diesel prices stood at six dollars twenty nine cents a gallon, an increase of about sixty six percent since the outbreak of the Iran war.
## Jobs report shows hiring slowed sharply in September
Employers added twenty nine thousand jobs in September, a sharp slowdown from one hundred sixty two thousand jobs added in August. The figure came in well below economists' expectations.
## Fed raises rates and signals more increases ahead
The Federal Reserve raised interest rates a quarter of a percentage point last month, its first increase since two thousand twenty three.

> The plain fact is that inflation is too high and has been for too long.
## Rate decision comes days before midterm elections
The next Fed meeting takes place on October twenty eighth, just days before the midterm elections. Affordability marks a top concern for voters heading into early November's vote.
## Key takeaway

Inflation climbed to 3.7% in September, driven by gas prices jumping over nine percent, as the Iran war resumes after a failed peace agreement.