Today’s Consumer Price Index (CPI) report shows prices rose 0.6% in September and are up 3.7% over the past year, the fastest pace since May. Gasoline prices jumped 9.1% in September alone, accounting for over half of the monthly increase in overall prices, and are up 34% from a year ago. Core CPI, excluding food and energy, rose 0.33% in September, the largest monthly increase since April.

Americans are increasingly frustrated with Trump's failure to bring down high prices. Consumers' views of current economic conditions are at an all-time low, and 82% of Americans disapprove of Trump's handling of the cost of living. Instead of working to rein in inflation, Trump is trying to pull a fast one on voters, spewing empty promises to bring prices down and send Americans a $5,000 “Trump dividend” if Republicans hold Congress, despite having never delivered on the DOGE and tariff checks he promised last year.

Today's inflation report is the last before the Federal Reserve's October 28 interest rate decision. The Fed raised interest rates last month for the first time in three years because of inflation concerns, and most officials anticipate another increase by the end of the year. In its latest meeting minutes, the Fed pointed to Trump's tariffs and higher energy costs, as well as the president’s never-ending war with Iran, as drivers of persistent inflation. Trump’s war and tariffs are raising the prices of nearly everything families buy, and now his actions are raising borrowing costs for families, too.

Groundwork’s Senior Vice President of Policy, Advocacy, and Research Alex Jacquez, released the following statement:

“It’s no wonder Americans have lost faith in Trump’s economy. The president has repeatedly made promises he can’t keep, and despite the band-aid attempts from the White House, there is a gaping hole in our economy just weeks from the midterms. Between the president’s war in Iran and reckless tariffs, his economy is on life support.”

The following statement was issued by Richard Fiesta, Executive Director of the Alliance for Retired Americans, regarding the announcement that there will be a 3.6% cost-of-living (COLA) benefit increase for millions of Social Security beneficiaries next year:

“Millions of Americans who rely on Social Security welcome any increase in their monthly benefits, but even this larger-than-normal cost-of-living increase is just not enough to keep up with the cost of food, gas, utilities, and prescription drugs.

“The average retired worker will see about $74 more per month next year but a good chunk of that will be wiped out by the higher Medicare Part B premium, which is projected to rise to $209.50 a month in January.

“Strengthening and expanding Social Security must be a national priority. If billionaires and the wealthiest 1 percent pay their fair share, we can boost benefits for everyone, implement a COLA that reflects the cost of things older Americans spend money on, and guarantee the program’s solvency for future generations. It’s time for clear and decisive action.

“In just three weeks, older Americans will have an opportunity to elect members of Congress who will make strengthening Social Security a priority. The future of our earned benefits is on the ballot.”

The following is a statement from Nancy Altman, President of Social Security Works, on Social Security’s 2027 cost-of-living adjustment (COLA), which will be 3.6 percent:

“Every year, Social Security’s benefits are automatically adjusted to account for inflation. This is an essential feature of the system, which prevents benefits from eroding over time.

Next year’s COLA can’t come soon enough for many Social Security beneficiaries. The Trump administration's war of choice with Iran and tariff chaos have driven gasoline prices up nearly 40 percent, and caused grocery costs to skyrocket.

The COLA adjustment will help. But it doesn’t fully account for the costs that Social Security beneficiaries face. That’s because the measure used to calculate it, the CPI-W, is designed to reflect the costs of working people — not retirees, who spend a higher percentage of their income on healthcare, housing, and other bare necessities.

Democrats in both the House and Senate have plans to improve the COLA, by switching to a more accurate measure, the CPI-E. Meanwhile, Republicans complain that the current COLA measure is too generous.

Many Republicans, including Speaker Mike Johnson, have endorsed plans to use a stingier measure, the chained CPI. That’s a cut to the American people’s hard-earned benefits.

Over time, switching to the chained CPI, as the Republicans have proposed, would shrink yearly benefits by hundreds and even thousands of dollars. Switching to the CPI-E, as the Democrats propose, would increase benefits. This would particularly impact women and Hispanics, who have longer average life expectancies.

In 2032, within the six-year terms of U.S. Senators elected this November, Social Security is projected to face a funding shortfall. The vast majority of Republicans refuse to support a single penny in revenue increases, even from the ultra-wealthy, to address the shortfall. That leaves benefit cuts, including less generous COLAs, as their only option.

The bottom line: Social Security’s future is on the ballot this November, and that includes the size of annual COLA adjustments.”