Inflation Hits 3.7% as Fuel Costs Squeeze Households
Rising gas prices and a 3.7% inflation rate are forcing families to reassess their monthly budgets ahead of the midterms.
Updated on Oct. 22, 2026 in Inflation
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The annual inflation rate climbed to 3.7% in September 2026, up from 3% in January 2025. This rise in costs for households coincides with a slowdown in legislative activity as the 119th Congress has enacted 121 laws so far this year.
Why it matters
Higher inflation, driven in part by a 9.1% monthly increase in gas prices in September, remains a primary concern for voters heading into the November 3, 2026 midterm elections. The economic climate is influencing political shifts as the House of Representatives remains out of session until mid-November.
The annual inflation rate hit 3.7% in September 2026, rising from 3% in January 2025. Household energy budgets were notably affected by a 9.1% monthly spike in gas prices during the same period.
The players
Donald Trump
The current President of the United States who is directing $400 million in spending toward political campaigns.
Kevin McCarthy
A former political leader who recently predicted changes to the control of the House of Representatives.
Mike Johnson
The Speaker of the House who authorized the cancellation of legislative sessions for the final two weeks of September.
The details
Inflation impacts household purchasing power as the cost of essential goods like fuel increases. The 119th Congress passed 121 laws through August 2026, a pace significantly slower than the historical average of 440 laws seen in earlier decades. With the House currently out of session, voters are focusing on how these economic trends and legislative output align with their personal financial priorities.
Timeline
Inflation reached 3.7% in September 2026.
The 119th Congress held 65 voting days between January and August 2026.
Midterm elections are scheduled for November 3, 2026.
The House is expected to return to session in mid-November 2026.
Money Landscape
Current legislative activity is significantly lower than the historical benchmark of 440 laws passed per Congress between 1987 and 2009. This slowdown coincides with a period of rising costs, as inflation has climbed to 3.7% annually.
Households should review their budgets to account for the 9.1% monthly spike in gasoline prices reported in September. Consult with a financial professional to discuss how broader economic shifts and potential legislative changes might impact your long-term savings and financial planning.
The takeaway
Rising inflation and fuel costs are forcing households to adjust their monthly spending as the federal government pauses legislative activity. Consider reviewing your upcoming expenses and discussing your budget strategy with a qualified financial professional ahead of the November 3 midterm elections.
What happens next
The House of Representatives is scheduled to return to session in mid-November 2026, and the midterm elections will occur on November 3, 2026.
Further reading
For more context on how price changes affect your budget, see our Inflation section.
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Do you believe the current Congress is effectively addressing the nation's most pressing economic problems?
