Voters Face Higher Cost of Living as Midterms Loom. Import Prices Saw The Highest Jump in Years.

The state of the economy, and specifically the cost of living, continues to be among the top issues in the upcoming midterm elections. And the most recent data points to higher prices.

A recent Bureau of Labor Statistics report showed import prices rising 1.1 percent in September. Compared with the same month last year, import prices were up 8.1 percent. That's the highest yearly rise since 2022.

The news follows inflation data showing a 0.6 percent increase in the Consumer Price Index (CPI) in September. For the year, the inflation rate stands at 3.7 percent.

The state of the economy, and the cost of living in particular, are central issues in the upcoming midterm elections. According to the Pew Research Center, 84 percent of voters said the economy was a very important issue heading into the election. The survey found that sentiment was consistent across party lines, with more than 80 percent of Democrats, Republicans, and independents citing it as a crucial issue.

As an issue, the economy is up five points in terms of importance to voters compared with what Pew found in the lead-up to the 2022 midterm elections.

Also, a recent Fox News poll had 60 percent of respondents saying that the cost of living was their top economic concern. In fact, the cost-of-living outpaced other economic worries by a wide margin: government spending (15 percent), jobs and income inequality (7 percent each), tariffs (6 percent), and taxes (5 percent).

Some of the increase in import prices and inflation have been tied to President Trump policy decisions, including his imposition of tariffs on trade partners. A report by the Federal Reserve Bank of New York, found a direct correlation between Trump's tariff policies and higher prices for consumers.

"We find that for every percentage point increase in average tariffs, consumer goods prices increase by about a quarter of a percent after one year," the report stated.

According to the study, tariffs raise prices in two ways: they directly increase the price of imported goods, and they increase the price of U.S.-made goods because the cost of imported materials and parts rises.

"The direct effect of higher import prices comes through quickly: about half is in place after three months and all of it by six months, as retailers take a few months to pass on higher costs. In contrast, the indirect tariff effects from higher domestic producer prices take longer to appear," the report stated.

Supply chain challenges tied to both the wars in Ukraine and Iran have also helped drive import prices higher. President Trump has failed to achieve peace in the Ukrainian war; instead, hostilities have intensified, with Russia and Ukraine increasingly hitting economic targets, including oil and gas infrastructure.

In the Middle East, the reverberations of Trump's war with Iran, which began in February, continue to be felt.

Fuel prices also remain elevated, although they are off yearly highs. The average price of a gallon of diesel is $6.32, up nearly $2.70 a gallon from a year ago. A regular gallon of gas is now $1.22 more expensive than at the same time last year.

"In September, higher prices for petroleum and petroleum products as well as natural gas drove the advance. Import prices for petroleum and petroleum products increased 4.6 percent, and prices for import natural gas rose 1.6 percent," the BLS report stated.

"Prices for nonfuel imports increased 0.7 percent in September and have not declined on a monthly basis since August 2025," the report noted.

Fuel prices were also a significant driver in the September inflation numbers. More than half of the CPI increase was explained by gas prices, which rose more than 9% last month.

"The energy index increased 5.2 percent over the month following a 2.1-percent increase in August. The shelter index rose 0.4 percent in September after rising 0.3 percent in August. The index for food was unchanged in September, as the index for food away from home increased 0.2 percent and the index for food at home fell 0.1 percent," BLS detailed.