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The Consumer Price Index rose to an annual rate of 3.7%

By Mark Huffman of ConsumerAffairs

• Consumer prices rose 0.6% in September, pushing the annual inflation rate to 3.7%, up from 3.4% in August.

• Gasoline prices surged 9.1% during the month, accounting for more than half of September's overall inflation increase.

• Grocery prices declined slightly, but consumers continued to pay more for housing, airline tickets, used cars, and other services.

Inflation accelerated in September as sharply higher gasoline prices drove up the cost of living, presenting another financial challenge for American households already struggling with elevated prices.

The Consumer Price Index (CPI) rose 0.6% in September, following a 0.4% increase in August, according to a report released Wednesday by the U.S. Bureau of Labor Statistics (BLS).

Over the past 12 months, consumer prices increased 3.7%, up from August's annual rate of 3.4%. The increase suggests inflationary pressures are intensifying again after a period of more moderate price increases.

Gas leads the way

Much of September's increase was directly attributable to higher energy prices, particularly gasoline, which has become a growing expense for consumers.

The gasoline price index jumped 9.1% during September, accounting for more than half of the overall monthly CPI increase. Compared with September 2025, gasoline prices were 34.2% higher.

That means a household that spent $150 a month on gasoline a year ago would now be spending approximately $201 for the same amount of fuel, assuming its purchases followed the national price index.

The broader energy index rose 5.2% in September and was up 20.4% over the past year.

Other energy costs also showed substantial increases. Fuel oil prices jumped 15.3% in September and were 74.2% higher than a year earlier, potentially creating additional financial pressure for households that rely on heating oil.

Electricity prices rose a more modest 0.2% during the month but were 4.4% higher over the past year.

Some relief at the supermarket

One encouraging development for consumers was a slight improvement in grocery prices.

The food index was unchanged in September, while the index for food purchased at grocery stores declined 0.1%.

Several common grocery items became less expensive during the month. Beef prices fell 1%, milk prices dropped 2%, and the broader category of meats, poultry, fish, and eggs declined 0.5%. Dairy products as a group fell 0.9%.

However, consumers encountered higher prices in other grocery aisles. Nonalcoholic beverages increased 0.9%, including a 1.5% increase in carbonated drink prices. Fruits and vegetables rose 0.5%.

Despite September's modest improvement, grocery prices remained 1.8% higher than a year earlier.

Eating at restaurants also continued to become more expensive. Prices for food away from home rose 0.2% in September and 3.5% over the past year.

Full-service restaurant meals were 3.8% more expensive than a year ago, while limited-service meals, including fast food, increased 3.2%.

Housing costs continue to climb

Housing remained another significant source of inflation.

The shelter index rose 0.4% in September, accelerating from August's 0.3% increase. Over the past year, shelter costs increased 3.2%.

Rent increased 0.2% during the month, while owners' equivalent rent, a measure of what homeowners would theoretically pay to rent their homes, rose 0.3%.

Hotel and motel costs also increased, with the lodging-away-from-home index rising 2% in September after a 2.4% increase in August.

Higher shelter costs are particularly important because housing represents a substantial portion of the typical household budget.

Airfares, used cars, and recreation become more expensive

Consumers also encountered price increases in several discretionary spending categories.

• Airline fares rose 1.2% in September and were a striking 22.4% higher than a year earlier.

• Used car and truck prices increased 0.7% during the month, although they remained 1.5% below their September 2025 level.

• Recreation prices rose 0.5%, education costs increased 0.6%, and apparel prices climbed 0.3%.

• Medical care prices increased 0.1%, with hospital services rising 0.7%. Prescription drug prices, however, fell 1.2%.

Communication costs provided some relief, declining 0.2% after rising sharply in August.

Core inflation also moves higher

Economists closely monitor core inflation, which excludes the often-volatile food and energy categories, to gauge underlying price pressures.

The core CPI increased 0.3% in September, matching August's monthly increase. Over the past 12 months, core inflation rose 2.6%, compared with 2.4% in August.

Although the annual core rate remains below overall inflation, its increase suggests price pressures extend beyond the recent surge in gasoline costs.

The continued increases in shelter, transportation services, and other categories indicate that inflation remains a challenge even when food and energy are excluded.

What the latest numbers mean for consumers

September's inflation report presents a mixed picture for household finances. Consumers are seeing some improvement in grocery prices, but higher gasoline costs are absorbing much of that relief. Housing expenses and the cost of services also continue to rise.

The acceleration in inflation could complicate the Federal Reserve's efforts to bring inflation back toward its long-term 2% target. Although the central bank focuses primarily on a different inflation measure, the Personal Consumption Expenditures price index, the CPI provides an important indication of changing consumer costs.

For households, the immediate concern is purchasing power. An annual inflation rate of 3.7% means prices, on average, are still rising rather than falling. Consumers whose wages or retirement incomes fail to keep pace may find it increasingly difficult to maintain their standard of living.

The latest report also illustrates how quickly energy prices can affect the broader inflation picture. Even with stable grocery prices, a sharp increase in gasoline costs can significantly raise the overall cost of living.

The cost of living adjustment will add $75 to the average monthly check

By Mark Huffman of ConsumerAffairs

• Social Security benefits will increase by 3.6% in January 2027, providing the average retiree with an additional $75 per month.

• About 76 million Americans will benefit from the increase, including retirees, people with disabilities and Supplemental Security Income recipients.

• Beneficiaries will learn their exact payment amounts beginning in late November, but higher Medicare premiums could offset some of the increase.

As expected, the 2027 Social Security cost-of-living adjustment will be significantly more than the 2026 COLA.

The Social Security Administration (SSA) has announced that benefits will increase by 3.6% in 2027, providing the average retiree with an additional $75 per month, or about $900 annually.

The COLA is significantly larger than the 2.8% increase beneficiaries received in 2026 and is intended to help offset rising consumer prices.

Nearly 72 million people receiving Social Security retirement, survivor and disability benefits will receive the increase beginning in January. Another 7.3 million people receiving Supplemental Security Income (SSI) will see their payments rise beginning December 31, 2026.

Because some people receive both types of benefits, the SSA estimates that approximately 76 million Americans will be affected.

Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability, said Social Security Commissioner Frank J. Bisignano.

How much will benefits increase?

The actual dollar increase depends on a person's current benefit amount. Someone receiving $1,500 per month will get an additional $54, bringing the monthly payment to $1,554.

A beneficiary currently receiving $2,000 will see a $72 increase, raising the monthly payment to $2,072. Someone receiving $2,500 will get an additional $90 per month. However, those figures are before deductions, including Medicare premiums.

The standard Medicare Part B premium rose to $202.90 in 2026, and the government has not yet announced the premium for 2027. Any additional increase could reduce the amount of the Social Security raise that beneficiaries actually receive.

How the increase is calculated

Social Security's annual COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation.

The government compares inflation during July, August and September with the same period a year earlier to determine the following year's adjustment.

While the increase is designed to protect purchasing power, some advocates for older Americans argue that the formula doesn't adequately reflect retirees' expenses, particularly healthcare costs.

The SSA said beneficiaries with personal My Social Security accounts can view their individual COLA notices online beginning in late November. Those who want electronic notices must enroll in paperless notifications by November 18. Beneficiaries who haven't enrolled will receive their notices by mail in December.

Pending home sales approach 12-year low as mortgage rates squeeze buyers

By Mark Huffman of ConsumerAffairs

• Pending home sales fell 4% in September, approaching a 12-year low.

• Inventory increased as buyers pulled back, while nearly one in five sellers cut prices.

• Higher borrowing costs are limiting what buyers can afford, even when they have more negotiating power.

U.S. pending home sales reached their lowest level since spring 2014, excluding April 2020s pandemic shutdown, according to Redfin. Septembers seasonally adjusted monthly decline was the largest in more than three years.

Its not surprising that when rates climb above 7%, fewer people buy homes because fewer people can afford them, said Chen Zhao, Redfins head of economic research.

The financial impact is substantial. As an illustration, a $300,000 mortgage financed for 30 years at 7.28% carries a monthly principal-and-interest payment of about $2,053. At a hypothetical 6% rate, the same loan would cost about $1,799a difference of approximately $254 a month, excluding taxes and insurance.

Lower prices arent moving the needle

That calculation helps explain why a lower asking price may provide less relief than buyers expect: financing costs can absorb part of the savings.

Pending sales declined annually across all 50 major metros studied. Seattles 24.4% drop led the declines, followed by Los Angeles at 16% and San Diego at 15.8%.

National inventory rose 1.2% monthly to its highest level since March 2020; new listings increased just 0.3%.

Prices also weakened: 19.8% of active sellers reduced asking prices, and 60.5% of completed sales closed below the original asking price. Nevertheless, the median sale price rose 1.3% annually to $393,895.

Canceled contracts

Meanwhile, 14.5% of September purchase contracts were canceled, exceeded only by March and April 2020. Jacksonvilles cancellation rate reached 19.9%, compared with 2.8% in San Francisco.

For consumers, negotiating a purchase price and choosing financing are separate decisions that both affect affordability. The Consumer Financial Protection Bureau encourages buyers to establish their budget, explore loan choices and obtain official offers from lenders to compare their options. Its homebuying resources include explanations of Loan Estimates and Closing Disclosures.

Both companies blame the other for the blackout

By Mark Huffman of ConsumerAffairs

• Verizon Fios customers lost STARZ channels and related streaming access after the companies contract expired September 30.

• Verizon says STARZ is demanding unreasonable rates, while STARZ accuses Verizon of refusing to negotiate productively.

• Affected customers can receive bill credits, and viewers can subscribe to STARZ separately while the dispute continues.

Verizon Fios customers have lost access to STARZ after the television provider and premium entertainment network failed to agree on a new distribution contract.

The agreement expired at th end of September. The interruption affects STARZ programming on Fios channels, On Demand and access to the STARZ app through a Fios subscription. Verizons notice also identifies STARZ ENCORE, IndiePlex and RetroPlex among the affected brands.

That leaves subscribers without their usual access to the Power franchise, Outlander, Outlander: Blood of my Blood, P-Valley and STARZs movie library. Other affected programming includes Fightland and S.W.A.T. Exiles, according to STARZ.

They said-they said

The companies have offered sharply different accounts of why negotiations failed.

Verizon says it is trying to protect customers from unjustified price increases. In a statement reported by TheWrap, the company accused STARZ of using public warnings about a potential blackout to pressure Verizon into accepting higher rates that would increase customers monthly bills.

STARZ disputes that characterization. Alison Hoffman, president of STARZ Networks, said Verizon misrepresented the networks position and had been unwilling to negotiate productively.

We stand ready to reach a fair agreement that restores STARZ to Verizon customers as quickly as possible, Hoffman said.

She also argued that removing STARZ reduces viewers choices, particularly access to programming featuring voices and experiences historically underrepresented in mainstream entertainment.

For customers, the immediate questions are how to keep watching and what happens to their bills.

Credit available

Verizon says residential customers whose television package includes STARZ, such as Most or Ultimate, can claim a one-time $5 credit at verizon.com/homeoffers. The credit should appear within one or two billing cycles and may not be combined with certain other credit offers.

Customers who purchase STARZ as a premium add-on will receive a retroactive credit covering its full value for the duration of the interruption, Verizon says. Those credits should also appear within one or two billing cycles.

Viewers who want to continue watching can purchase a separate streaming subscription through STARZ. Before signing up, consumers should check the introductory offer, renewal price and cancellation terms. A separate subscription creates an additional bill to track while Fios access remains interrupted.

Verizons posted notice says negotiations are continuing and that it hopes to restore the programming soon. It provides no date for its return.