FORT WAYNE, Ind. (WOWO) — Inflation in the Midwest rose faster than the national rate in September, with higher gasoline, electricity and housing costs contributing to the increase, according to the U.S. Bureau of Labor Statistics.

The Consumer Price Index rose 4.2% year over year in the Midwest, compared with a 3.7% increase nationwide.

Gasoline prices recorded the largest annual increase among the categories highlighted in the report, rising 35.5% in the Midwest and 34.2% nationally.

Even after excluding food and energy, prices increased 3% in the Midwest, compared with 2.6% nationwide.

Household energy costs rose 7.7% in the Midwest and 6.2% nationally. Electricity prices increased 8.8% regionally, twice the national increase of 4.4%.

Housing and dining costs also climbed faster in the Midwest. Rent increased 4.3% regionally, compared with 2.8% nationally, while restaurant prices rose 4.3% in the Midwest and 3.5% across the country.

Grocery prices, however, increased more slowly in the Midwest. Food-at-home costs rose 1.5% year over year, compared with a 1.8% national increase.

Rachel Blakeman, director of Purdue University Fort Wayne’s Community Research Institute, said persistent inflation could continue to strain household budgets, particularly as families prepare for holiday spending.

Blakeman said workers whose pay raises do not keep pace with rising prices may find their incomes cover less than they did a few years ago, forcing difficult decisions about household expenses and credit card use.

She also pointed to the potential political implications of higher costs as early voting gets underway in Indiana and other states.

The September figures come as inflation remains above the Federal Reserve’s 2% long-term target. Blakeman said she expects the central bank to respond with higher interest rates as 2026 ends and 2027 begins.