October 14, 2026
According to the latest report by the Labor Department, inflation in the U.S. is beginning to accelerate ahead of the mid-term elections. The CPI (Consumer Price Index) increased by 3.7% on a year-over-year basis in September, compared to 3.4% in the previous month. On a month-over-month basis, the CPI jumped by 0.6%, the biggest increase since September 2023, and compared to a 0.4% increase in August.
Prices at the pumps climbed more than 9% on a month-over-month basis, which affects consumer sentiment and, by extension, the wider economy. The rising cost of gasoline also impacts the business sector, as companies review their pricing policy to offset the rising energy prices. For example, PepsiCo plans to increase the prices of its snacks and beverages, including Doritos, Ruffles, Sun Chips and soda.
The jump in inflation has already impacted voters’ perception of the incumbent administration. According to an AP-NORC poll, only 17% of American adults approved of how Donald Trump handled the situation with soaring prices, and 26% approved of his management of the economy, the lowest in the president’s tenure. Inflation will continue to be a critical factor influencing voters’ decision in the upcoming mid-term elections as it has done for many years.
