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US inflation rose to 3% in September 2025, the highest rate since January. Prices increased by 0.3% from August. This is slightly lower than experts’ expectations of a 0.4% rise.
The report came from the Bureau of Labor Statistics on October 24, 2025. It was one of the few economic reports released because the US government has been shut down since October 1. The shutdown has paused most federal services and delayed many economic reports.
Energy prices were the biggest reason for higher inflation. Gasoline prices went up 4.1% in September. Other areas like food and housing also rose, but the impact from tariffs on imported goods stayed small.
Core inflation, which excludes food and energy prices, stayed at 3% over the year. This shows that underlying prices are still rising steadily.
The Federal Reserve will meet on October 28 - October 29. Experts expect it may cut interest rates again to help the economy. Markets reacted positively to the CPI report. Stock futures for the Dow Jones, S&P 500, and NASDAQ all went up after the numbers came out.
The ongoing government shutdown has made the situation quite difficult for policymakers to get a comprehensive picture of the economy. A variety of reports, including jobs and GDP data, have been put on hold. The CPI report is now regarded as an essential guide for the Federal Reserve and investors.
While inflation is slightly higher, some areas like housing show smaller increases. This may help ease pressure on prices. Still, consumers are feeling the impact of higher energy and food costs.
The 3% inflation rate is an important signal for the economy. Policymakers will watch future reports closely. The next CPI report will show if prices keep rising or start to slow.
For now, the September data shows that inflation remains steady, even with the government shutdown. The Federal Reserve will have to balance keeping prices under control while supporting economic growth.
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