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Fuel costs drive higher inflation across Maryland and the D.C. region
U.S. inflation reached 3.7% in September, with sharp increases in gasoline and fuel oil contributing to higher costs in Maryland and nearby communities. Prices rose 4.1% in the Washington-area region, while the latest Baltimore-area figure, for August, was 2.3%.
Rising fuel costs helped push annual U.S. inflation to 3.7% in September, up from 3.4% in August, according to data released Oct. 14 by the U.S. Bureau of Labor Statistics.
The increase is also showing up in regional figures. Consumer prices in the Washington, D.C., area — which includes Maryland and Virginia suburbs — were 4.1% higher than a year earlier in September. The latest available figure for the Baltimore region showed a 2.3% annual increase in August. Higher fuel prices were a major factor in both areas, according to the bureau.
Nationally, gasoline prices were up 34% over the year, while fuel oil, including diesel, rose 72%. The report attributed the energy surge largely to the ongoing war in Iran. September’s overall inflation rate was the highest since May, when it reached 4.2%.
The figures arrive as households face growing pressure from everyday expenses. “Inflation has wiped out wage gains for 6 months now,” Heather Long, chief economist for Navy Federal, wrote in a social media post. She said many people are working more hours to keep up but still falling behind.
Outside energy, food away from home was among the largest contributors to price increases, rising 3.5% over the year. Core inflation, which excludes food and energy, was 2.6%. Medical care products fell 3.3%, and used cars and trucks were down 1.5% compared with a year earlier.
Several states have recently adopted fuel-tax relief to counter rising pump prices. Maryland was not listed among them. Such measures can reduce costs for drivers, but they also cut revenue for public services and transportation. North Carolina, for example, expects a gas-tax holiday to reduce state revenue by more than $362 million in the fiscal year.
Higher fuel and heating costs may also affect households as colder weather approaches. New York estimates home heating oil prices were up 67% from a year earlier, reaching $6.21 a gallon this month. Connecticut announced additional heating assistance in October, citing high delivered-oil prices.