The Economy

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America In Focus: inflation accelerated in August, home sales weaken and diesel prices soar

The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses. Read More.

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💰 America's borrowing binge

Illustration: Sarah Grillo/Axios

Americans are facing a rising tab as a multi-decade borrowing binge collides with a spike in energy prices caused by the Iran war. Long-term interest rates are surging, as are consumer prices. It's a toxic mix of near-term inflation pressures and years of fiscal imbalance, Axios' Neil Irwin reports. 📈 Driving the news: The yield on the benchmark 10-year U.S. Treasury note rose to 4.97% Friday, up a full percentage point since the end of February, and only a hair below its high since 2007. That rate helps set borrowing costs across the economy, from business loans to mortgages. The rate on a 30-year fixed-rate mortgage has risen in lockstep, reaching 7.08% Friday, per Mortgage News Daily — the highest in more than a year. Gasoline is now at a national average of $4.31 a gallon, while diesel has climbed to over $6 a gallon. 👀 All this means the Fed is now expected to raise its target interest rate this week, but longer-term borrowing rates are set in global markets — and determined by bigger forces. Read on.

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🍽️ 1 for the road: America's best tippers

Data: Toast. Map: Sami Sparber/Axios Delaware, West Virginia and New Hampshire are home to America's top tippers, with diners leaving around 21% on average, according to new Toast data shared first with Axios' Sami Sparber. Why it matters: "Tip fatigue" is fueling a broader rethink of tipping culture, even as average tips haven't changed much over the past two years. 🧮 By the numbers: Nationwide, diners tipped roughly 19% on average across all restaurant types in Q2 2026. At the bottom: California, D.C. and Washington state, where averages run under 18%. Keep reading.

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📈 Charted: America's income record

Data: Census Bureau. Chart: Russell Contreras/Axios U.S. household income hit a record in 2025, Axios' Russell Contreras writes from new census data. Inflation-adjusted household income rose 2.6% to $87,460 in 2025, the highest since records began in 1967. The official poverty rate fell for a third straight year, dropping slightly to 10.2%. 👓 Between the lines: The economy delivered historic topline numbers, but the gains weren't spread evenly. Income among the wealthiest 10% of Americans rose 1.7%, while income among the bottom 10% showed no significant change.

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💰 CEO confidence hits 4-year high

New this morning: CEO economic confidence is the highest since 2022, with that optimism now spilling into plans to hire more workers, Axios Macro authors Courtenay Brown and Neil Irwin write. The Business Roundtable's CEO Economic Outlook Index climbed 3 points in the third quarter, to 94 — the fifth consecutive increase and well above the historical average of 83. The index has climbed steadily from a five-year low after President Trump's "liberation day" tariffs early last year. Explore the data ... Keep reading.