WASHINGTON, October 14, 2026 — U.S. consumer prices rose faster in September, with gasoline responsible for more than half of the monthly increase, according to new federal data. The annual inflation rate climbed to 3.7%, up from 3.4% in August, as higher fuel costs put fresh pressure on household budgets.
Update, October 14, 2026: Social Security sets 2027 cost-of-living adjustment at 3.6%
The Social Security Administration announced on October 14 that Social Security benefits and Supplemental Security Income (SSI) payments will rise 3.6% in 2027 — the annual cost-of-living adjustment, or COLA, that follows from the inflation data reported above.
Nearly 72 million Social Security beneficiaries will see the increase beginning in January 2027. Increased payments to about 7.3 million SSI recipients begin earlier, on December 31, 2026. In all, the SSA says the adjustment covers 76 million Americans.
On average, retirement benefits rise by about $75 a month. The SSA estimates the average retired worker’s monthly benefit will increase from $2,095 to $2,170, while the average disabled worker’s benefit rises from $1,642 to $1,701.
The federal SSI payment standard rises to $1,029 a month for an individual, from $994, and to $1,544 for a couple, from $1,491. Separately, the maximum amount of earnings subject to the Social Security payroll tax — the taxable maximum — rises to $192,300 in 2027, from $184,500.
Why the COLA is 3.6% when inflation is 3.7%
The two figures measure different things. The 3.7% reported above is the Consumer Price Index for All Urban Consumers (CPI-U) for September alone, compared with a year earlier. The COLA is calculated by law from a different index — the CPI for Urban Wage Earners and Clerical Workers (CPI-W) — averaged over the whole third quarter, July through September, and compared with the third quarter a year earlier. A different index, measured over a different period, produces a different number — and the COLA is then applied to benefit checks, rather than measuring prices directly.
Sources: Social Security Administration, 2027 COLA announcement and 2027 COLA fact sheet; Bureau of Labor Statistics, September 2026 CPI release (linked above).
The Bureau of Labor Statistics reported that the Consumer Price Index rose 0.6% in September on a seasonally adjusted basis, compared with 0.4% in August. The 12-month rate was 3.7%, above the 3.6% consensus forecast reported by financial news outlets. The monthly increase matched the 0.6% forecast.
Gasoline drove the jump
The CPI gasoline index climbed 9.1% in September, accounting for more than half of the overall monthly inflation increase, the BLS said. That is a seasonally adjusted index change, not a claim that every gas station raised its pump price by the same amount. Gasoline was up 34.2% over 12 months. The broader energy index rose 5.2% for the month and 20.4% over the year.
What happened to groceries, rent and other prices?
Not every household expense rose at the same pace. Grocery prices, measured by the food-at-home index, edged down 0.1% in September. Overall food prices were unchanged, while restaurant and other food-away-from-home prices increased 0.2%. The shelter index rose 0.4%, and used-car prices increased 0.7%.
Core inflation, which excludes food and energy, increased 0.3% for the month and 2.6% over the past year, compared with 2.4% in August. These figures show that price pressures extended beyond gasoline, although energy dominated September’s headline increase.
What it means for households and interest rates
A 3.7% annual inflation rate means the measured consumer basket costs 3.7% more than it did a year earlier; it does not mean prices rose 3.7% in September alone. Falling grocery prices in a single month also do not erase earlier increases.
The report arrives ahead of the Federal Reserve’s scheduled October 27–28 policy meeting. Officials will weigh inflation alongside employment and other economic data; this report alone does not determine whether interest rates will change.
September inflation at a glance
| Measure | September change |
|---|---|
| Overall CPI, monthly | +0.6% |
| Overall CPI, annual | +3.7% |
| Gasoline index, monthly | +9.1% |
| Energy index, monthly | +5.2% |
| Core CPI, annual | +2.6% |
| Shelter index, monthly | +0.4% |
| Groceries, monthly | −0.1% |
Source: U.S. Bureau of Labor Statistics, September 2026 CPI release, published October 14, 2026. Monthly changes are seasonally adjusted; annual changes are not seasonally adjusted.
Primary source: BLS Consumer Price Index — September 2026.
