US Inflation Rises, Slightly Beating Forecasts
The latest data on US consumer prices has confirmed that the country's inflation rate is still on the rise. According to the Bureau of Labor Statistics' September 2025 Consumer Price Index (CPI), prices increased by a modest 0.3% in September, driven primarily by a sharp 4.1% hike in gasoline costs. This marks an annual increase of 3%, which was slightly higher than forecasters had predicted.
The CPI report comes as the federal government shutdown has delayed its release by approximately two weeks, forcing staff to be recalled from furlough. As a result, the Social Security Administration will now use this data to calculate the annual cost-of-living adjustment for benefits in 2026, with US retirees set to receive a 2.8% increase.
Economists had predicted an even stronger inflation rate, but the latest figures suggest that prices may be beginning to level off. However, other indicators point to ongoing price pressures, including rising gasoline costs and tariffs imposed by former President Donald Trump during his presidency. The Federal Reserve is set to meet next week, with many expecting it to cut interest rates in an attempt to curb inflation.
Meanwhile, a recent poll has found that nearly two-thirds of Americans have reported increased monthly costs since last year, highlighting the ongoing impact of inflation on household budgets. It remains to be seen whether Trump's promises to "end inflation" and make America affordable again will prove to be nothing more than rhetoric.
The latest data on US consumer prices has confirmed that the country's inflation rate is still on the rise. According to the Bureau of Labor Statistics' September 2025 Consumer Price Index (CPI), prices increased by a modest 0.3% in September, driven primarily by a sharp 4.1% hike in gasoline costs. This marks an annual increase of 3%, which was slightly higher than forecasters had predicted.
The CPI report comes as the federal government shutdown has delayed its release by approximately two weeks, forcing staff to be recalled from furlough. As a result, the Social Security Administration will now use this data to calculate the annual cost-of-living adjustment for benefits in 2026, with US retirees set to receive a 2.8% increase.
Economists had predicted an even stronger inflation rate, but the latest figures suggest that prices may be beginning to level off. However, other indicators point to ongoing price pressures, including rising gasoline costs and tariffs imposed by former President Donald Trump during his presidency. The Federal Reserve is set to meet next week, with many expecting it to cut interest rates in an attempt to curb inflation.
Meanwhile, a recent poll has found that nearly two-thirds of Americans have reported increased monthly costs since last year, highlighting the ongoing impact of inflation on household budgets. It remains to be seen whether Trump's promises to "end inflation" and make America affordable again will prove to be nothing more than rhetoric.