S. inflation accelerated last month as gas, clothes, and air fares got more expensive, evidence that rising prices remain an economic challenge just a few weeks before the midterm elections that have focused heavily on issues related to affordability . 4% in August. 4% increase the previous month. 1% peak in 2022 but this year has ticked higher since the war began in late February. The rise isn’t all linked to gas prices, as surging investment in data centers and AI has also pushed up prices for computer chips and the consumer electronics that also use them. Elevated inflation has posed political problems for Republicans in Congress and is a challenge for the Federal Reserve, which is required by Congress to seek stable prices. 4% the previous month. 3% from August to September, an elevated pace that, if it continued for a year, would run well above the Fed’s 2% target. S. voters. S. adults approve of his handling of the cost of living issue. And only 26% approve of his handling of the economy overall, a new low. Federal Reserve officials are watching inflation data closely to determine whether they need to raise their short-term interest rate further, and by how much. 9%. Yet some key Fed officials have suggested the central bank can wait before increasing rates again. The Fed has a policy meeting Oct. 27-28, but most Wall Street investors expect it to hold rates then, and potentially implement another hike in December. Fed officials have penciled in just one more rate hike this year.