US-Iran War: Americans pay the price of Iran war as US inflation heats up

Well, let's start with the latest on the US economy and inflation accelerated in September with consumer prices rising 3.7% on a year-on-year basis that's up from 3.4% in August. Now, the biggest driver was a sharp surge in energy costs. Gasoline prices jumped 9.1% in September accounting for more than half of the monthly increase in consumer prices. Other motor fuels including diesel rose 11.9% during the month and were up 60.9 percent from a year earlier the Iran war and the resulting disruption to energy supplies have added to these pressures higher diesel costs also raise the risk of increased transportation and distribution expenses which could eventually feed into food and other consumer prices however food inflation remained relatively muted in September overall food prices were unchanged while grocery prices declined 0.1 percent on an annual basis grocery prices were up 1.8 percent whereas the latest data shows that inflationary pressures are no longer limited to energy this has raised concerns that price growth could remain elevated the pressure on households is compounded by weakening purchasing power average hourly earnings fell in the last two months and this means that workers are struggling to keep pace with the rising cost of living and the impact is particularly significant for lower income households which have less financial room to absorb higher fuel transport and other essential expenses. Economists have also raised questions about whether consumer spending can remain resilient if purchasing power continues to weaken. The latest inflation report has also complicated the Federal Reserve's next interest rate decision. Financial markets have increased their expectation of another rate hike at the Fed's October 27-28 meeting. The new figures could make the Fed's decision more difficult. Weaker-than-expected job growth had previously strengthened the case for holding rates steady, but stickier inflation could require the central bank to keep monetary policy tighter for longer. Most economists still expect the Fed to hold rates this month, with another increase possible in the month of December. Markets also reacted very swiftly. The US dollar rose, Treasury yields climbed, and Wall Street fell. Gold dropped nearly 2% to around $4,086 an ounce. while the Nasdaq declined more than 2%. Bitcoin also slipped to below $82,000. This data carries political implications as well ahead of the November midterm elections. Rising living costs have become a major challenge for President Donald Trump and the Republican Party. A Reuters Ipsos poll found that around 78% of Americans blame Trump's policies, including tariffs and the West Asia conflict for rising prices with energy costs elevated with growth under pressure and inflation broadening the latest figures and that leaves both the Federal Reserve and the White House facing difficult economic and political choices.