# Rising energy costs drive inflation in U.S. and Canada

> Live situation record from CLSTR: https://clstr.news/situations/us-energy-and-import-price-inflation
> Updated: 2026-10-19T12:31:19.000Z. Sources: 37. Developments: 2.

Economic data from mid-October 2026 indicates rising inflationary pressures in the United States and Canada, driven largely by surging energy costs.

In the United States, inflation reached 3.7% in September, following a 34.2% surge in domestic gasoline prices. Significant price pressures have also been noted in home heating oil and natural gas, which increased nearly 75% compared to the previous year. These trends impact international trade, with U.S. import prices rising 8.1% annually and export prices climbing 11.6%.

Parallel trends are appearing in Canada, where the annual inflation rate rose to 3.1% in September, up from 3.0% in August. This pushed the consumer price index above the Bank of Canada’s target range for the first time in three months. The acceleration was primarily driven by a 27.8% year-over-year rise in gasoline prices, fueled by ongoing uncertainty in the Middle East, and a 57.8% surge in fuel oil, which has particularly impacted Atlantic Canada due to its widespread use for home heating.

Despite these energy spikes, core inflation measures in Canada remain relatively contained; excluding gasoline, consumer prices increased 2.2% year-over-year. Grocery inflation also slowed to 1.7%, its lowest rate since May 2024, aided by price drops in fresh vegetables and confectionery, though beef prices rose 8.7% annually. However, shelter costs and rents continue to rise, with rents increasing by 2.8%. 

Economists suggest that because core inflation remains relatively contained near 2%, the Bank of Canada may not feel immediate pressure to raise interest rates at its upcoming October 28, 2024, meeting. However, Bank of Canada Governor Tiff Macklem has noted that sustained high energy prices could pose risks to broader inflation targets.

## Claims

- The consumer price index climbed 3.7% in September from a year earlier. (disputed by 2 sources)
- U.S. inflation was 3.7% in September compared to September 2025. (disputed)
- Canada's annual inflation rate rose to 3.1% in September. (corroborated by 17 sources)
- Gasoline prices rose 27.8% year-over-year in September. (corroborated by 16 sources)
- The Bank of Canada's next interest rate decision is on October 28, 2024. (corroborated by 13 sources)
- Grocery prices rose 1.7% year-over-year in September. (corroborated by 12 sources)
- Excluding gasoline, consumer prices increased 2.2% year-over-year in September. (corroborated by 12 sources)
- Shelter prices rose 1.8% annually in September. (corroborated by 8 sources)
- Fuel oil and other fuels rose 57.8% year-over-year in September. (corroborated by 7 sources)
- Rents increased by 2.8% in September. (corroborated by 6 sources)
- Consumer prices in rural America rose 4% over the past 12 months. (corroborated by 2 sources)

## Timeline

### 2026-10-19: Canada inflation rises to 3.1% in September driven by energy costs

Canada's annual inflation rate rose to 3.1% in September, up from 3.0% in August, driven by a 27.8% spike in gasoline prices despite moderating core inflation and grocery costs.

29 sources. https://clstr.news/cluster/us-import-prices-rise-81-annually-highest-since-july-2022

### 2026-10-15: U.S. gasoline prices rise 34% over the past year

U.S. gasoline prices have risen over 34% in the past year, significantly increasing monthly costs for drivers, particularly those operating popular large vehicles like the Ford F-150.

8 sources. https://clstr.news/cluster/us-gasoline-prices-rise-34-over-the-past-year

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Cite as: Rising energy costs drive inflation in U.S. and Canada. CLSTR, https://clstr.news/situations/us-energy-and-import-price-inflation